The September 30, 2011, records of Perfecto Communications include these accounts:Accounts…

The September 30, 2011, records of Perfecto Communications include these accounts:Accounts Receivable……………………………… $250,000Allowance for Doubtful Accounts…………… (8,200)During the year, Perfecto Communications estimates doubtful-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in Allowance for Doubtful Accounts to correspond to the aging schedule. During the last quarter of 2011, the company completed the following selected transactions:Nov 30 Wrote off as uncollectible the $1,400 account receivable from Black Carpets and the $600 account receivable from Old Timer Antiques.Dec 31 Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year-end, based on the aging of receivables, which follows.Requirements1. Record the transactions in the journal. Explanations are not required.2. Prepare a T-account for Allowance for Doubtful Accounts and post to that account.3. Show how Perfecto Communications will report its accounts receivable in a comparative balance sheet for 2010 and 2011. Use the three-line reporting format. At December 31, 2010, the company’s Accounts Receivable balance was $214,000 and the Allowance for Doubtful Accounts stood at$4,600.
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The September 30 2011 records of Perfecto Communications inclu