(Solved) : Dent Sign Company Uses Allowance Method Accounting Uncollectible Accounts Company Uses Inc Q32903002 . . . .

TheDent Sign Company uses the allowance method in accounting foruncollectible accounts. The company uses incomestatement approach to estimate uncollectible accounts.Past experience indicates that1% of net credit sales will eventually be uncollectible. Selectedaccount balances at December 31,2017, and December 31, 2018, appearbelow:

​12/31/17​​12/31/18​

​Net CreditSales​$400,000​$500,000

​AccountsReceivable​75,000​100,000

​Allowance for DoubtfulAccounts​5,000​?

Instructions

(a)​Recordthe following events in 2018.

​Aug.​10​Determinedthat the account of Ann Kochfor $1,000 is uncollectible.

​Sept.​12​Determinedthat the account of Joe Yatesfor $4,000 is uncollectible.

​Oct.​10​Receiveda check for $550 as payment onaccount from Ann Koch, whose account had previously been writtenoff as