Chapter 9, Problem P9.44PS

To determine

Allowance method:

Allowance method creates a separate account for doubtful debts to write off bad debt expenses, so that incase of reinstatement of accounts receivable, the amount could collected in a proper manner.

Aging method:

Allowance method uses prescribed percentages for different age groups of accounts receivable to determine a portion of uncollectible receivables.

To determine:

1. The journal entries for Crystal Clear.

2. The Net Accounts Receivable reported on the balance sheet as of April 30, 2019.