# Ink Records recorded $2,333,898 in credit sales for the year and$1,466,990 in accounts receivable. The uncollectible percentage is 3% for the income statement method and 5% 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 $20,254; 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 6PB Textbook Problem 3 views ## Ink Records recorded$2,333,898 in credit sales for the year and $1,466,990 in accounts receivable. The uncollectible percentage is 3% for the income statement method and 5% 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$20,254; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.

To determine

(b)

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 (\$2,333,898×3%)</
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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