The Branson Company Uses the Percent of Sales Method of Accounting

Essay

The Branson Company uses the percent of sales method of accounting for uncollectible accounts receivable. During the current year, the following transactions occurred:
Mar 7 Branson Company determined that the $2,000 account receivable of the Bing Company was uncollectible, and wrote it off.
Jun 9 Bing Company paid $1,500 of the amount owed to the Branson Company. Branson Company does not expect further collections from the Bing Company.
Dec 31 Branson Company estimates that 1.5% of its $900,000 of credit sales will be uncollectible.
Prepare the general journal entries to record these transactions.