The Lily Company Uses the Percent of Receivables Method of Accounting

question 162

Essay

The Lily Company uses the percent of receivables method of accounting for uncollectible accounts receivable.,and a perpetual inventory system.As of January 1,its net accounts receivable totaled $192,000 (Accounts Receivable $200,000 less an $8,000 Allowance for Doubtful Accounts).During the current year,the following transactions occurred.