Compute the ending inventory using the FIFO and the weighted average method below. These are the same transactions used in week 3 homework:
Complete journal entries for the following transactions:
1. Sales for the month of June were $75,000. Using a percentage allowance method of 1% record the allowance.
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.