The following information is available for Phoenix Corporation, which uses the allowance method. Phoenix expects 3% of sales on account to be uncollectible.?Sales on account: $490,000?Collections on account: $440,000Required:a) Compute the amount of uncollectible accounts expense for Year 1.b) Prepare the journal entry to record uncollectible accounts expense for Year 1.c) In Year 2, after several attempts of collection, Phoenix wrote off accounts that could not be collected of $700. Prepare the journal entry to record the write-off of the $700.d) Later in Year 2, Phoenix received a check for $140 from one of the customers whose account had been written off in c), above. Prepare the required journal entries to record the collection of the $140.
What will be an ideal response?
a) $14,700
b)
a) $490,000 × 3% = $14,700
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