[The following information applies to the questions displayed below.] Suzuki Supply reports the following amounts at the end of 2021 (before adjustment).
Credit Sales for 2021 $ 256,000
Accounts Receivable, December 31, 2021 51,000
Allowance for Uncollectible Accounts, December 31, 2021 1,000 (debit)
Required:
1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 10% of receivables will not be collected. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. Suzuki estimates 2% of credit sales will not be collected. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
3. Calculate the effect on net income (before taxes) and total assets in 2021 for each method.