Chapter 9, Problem P9.30APGA

To determine

Concept Introduction:

Allowance method: Under the Allowance method the estimated bad debts expenses are recorded using the Allowance for doubtful account and the actual bad debts written off using this account. Allowance for doubtful accounts represents the amount of expected bad debts or uncollectable accounts. This account is made as a provision for future bad debts.

Notes Receivable: Notes Receivable is an asset accounts which represents the amount receivable from the customers or borrower. A note receivable can be issued by a creditor to its debtor for the liability of payments.

To prepare: The journal entries for the given transactions