Sales for the month of June were $75,000. Using a percentage allowance method of 1% record the allowance for doub±ul accounts.2. On June 30, it was determined that two customers with receivables totaling $980 were not likely to pay

	Complete journal entries for the following transactions related to accounts receivable and the allowance for doubtful accounts:

	1. Sales for the month of June were $75,000. Using a percentage allowance method of 1% record the allowance for doubtful accounts.

	2. On June 30, it was determined that two customers with receivables totaling $980 were not likely to pay.

	3. On July 15, surprisingly one of the customers who owed $400 and was written off on June 30, paid their bill.

	4. On July 31, our fiscal year ends, the allowance for doubtful accounts has a balance of $1,780
	The company uses an aging method to calculate the desired allowance balance.
	An accounts receivable aging shows the following:
		30 days or less = $68,500
		31 -60 days = $10,400
		61-90 days = $4,300
		Over 90 days = $1,200
		The company wants an ending reserve equal to:
		30 days or less = 1%
		31-60 days = 3%
		61-90 days = 5%
		over 90 days = 15%

There are two problems this week. Click on the tab at the bottom of the spreadsheet to see problem 2.

Compute the ending inventory using the FIFO and the weighted average method below. Use the perpetual method for both. These are the same transactions used in week 3 homework:

		units	price
1-Jan	Beginning inventory	3,500	$ 3.00
14-Jan	Bought	1,500	$ 3.15
5-Feb	Sold	1,000
22-Feb	Bought	2,000	$ 3.20
7-Mar	Sold	1,500
15-Mar	Sold	2,000
5-Apr	Bought	1,000	$ 3.25
10-Apr	Sold	800
12-Apr	Sold	800
22-Apr	Sold	500
4-May	Sold	600
10-May	Bought	2,000	$ 3.30
25-May	Sold	500

FIFO method (scroll down for Weighted Average entry area)
	Purchased		Sold	Balance
Date	units	cost	total	units	cost	total	units	cost	total
1-Jan							3500	$ 3.00	$ 10,500.00










































Weighted Average Method
	Purchased		Sold	Balance
Date	units	cost	total	units	cost	total	units	cost	total
1-Jan							3500	$ 3.000	$ 10,500.00