The Cat Company Obtained the Following Information from Its Accounting

Essay

The Cat Company obtained the following information from its accounting records for the year ended December 31, 2012:
Cat Company uses the percent-of-sales method, at 2.0% of credit sales, to estimate uncollectible accounts for 2012.
The president of the company wants to change to the aging-of-receivables method and estimates $12,450 as the uncollectible amount for 2012.
Prepare a schedule for the president showing the amount of the adjusting entry, ending balance in the allowance account, and the net realizable value of accounts receivable under each method.