Brinkley Corporation Uses the Perpetual Inventory System and the Allowance

Essay

Brinkley Corporation uses the perpetual inventory system and the allowance method for estimating uncollectible accounts.InstructionsPrepare entries to record the following transactions for a company that uses the perpetual inventory method:Jan 5 Sold merchandise to Amy Ward for $1,500, terms n/15. The merchandise cost $900.Apr 15 Received partial payment of $500 from Amy Ward.Aug 21 Wrote off as uncollectible the balance of the Amy Ward account when she declared bankruptcy.Oct 5 Received a cheque for $350 from Amy Ward. No further collections are expected.