Question Allowance method: Income statement and balance sheet approaches.Tempe Company reported accounts receivable of $300000 and an allow?ance for uncollectible accounts of $31000 (credit) on the December 31 19X2 balance sheet. The following data pertain to 19X3 activities and operations: Sales on account $2000000 Cash collections from credit customers 1600000 Sales discounts 50000 Sales returns & allowances 100000 Uncollectible accounts written off 29000 Collections on accounts that were previously written off 2700 Instructions Prepare journal entries to record the sales- and receivables-related trans?actions from 19X3. Prepare the December 31 19X3 adjusting entry for uncollectible ac?counts assuming that uncollectibles are estimated to be 2% of net credit sales. Prepare the December 31 19X3 adjusting entry for uncollectible ac?counts assuming that uncollectibles are estimated at 1% of year-end accounts receivable. Compute the amount of the adjusting entry in part (c) assuming that $46000 rather than $29000 of accounts were written off in 19X3.
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