申論題

四、The December 31，2013 balance sheet of Sauder Company had Accounts Receivable of £500,000 and a credit balance in Allowance for Doubtful Accounts of £33,000. During 2014, the following transactions occurred: sales on account £1,300,000; sales returns and allowances, £50,000; collections from customers, £1,215,000; accounts written off £35,000; previously written off accounts of £5,000 were collecte(D) Instructions

(c) If the company uses the percentage-of-receivables basis to estimate bad debts expense and determines that uncollectible accounts are expected to be 4% of accounts receivable, what is the adjusting entry at December 31, 2014? (3%)