# Funnel Direct recorded $1,345,780 in credit sales for the year and$695,455 in accounts receivable. The uncollectible percentage is 4.4% for the income statement method and 4% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $13,888; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. FindFindarrow_forward ### Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 #### Solutions Chapter Section FindFindarrow_forward ### Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 Chapter 9, Problem 6PA Textbook Problem 1 views ## Funnel Direct recorded$1,345,780 in credit sales for the year and $695,455 in accounts receivable. The uncollectible percentage is 4.4% for the income statement method and 4% for the balance sheet method.A. Record the year-end adjusting entry for 2018 bad debt using the income statement method.B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method.C. Assume there was a previous credit balance in Allowance for Doubtful Accounts of$13,888; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.

To determine

(a)

To journalize:

Uncollectible percentage using the income statement method.

Introduction:

Journal entries record business transactions. These transactions have double effect on accounts such that total of all assets equate with liabilities and equities.

### Explanation of Solution

Record bad debts using income statement method:

 Date Account Debit($) Credit($) Dec. 31 Bad Debt Expense (\$1,345,780×4
To determine

(b)

To journalize:

Uncollectible percentage using the balance sheet method.

To determine

(c)

To journalize:

Allowance for Doubtful Accounts using the income statement method and balance sheet method.

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