The percentage of receivables approach to estimating bad debts expense is used by Pharoah Company. On February 28 (the fiscal
yearend), the firm had accounts receivable in the amount of $520,000 and Allowance for Doubtful Accounts had a credit balance of
$1,620 before adjustment. Net credit sales for February amounted to $3,710,000. The credit manager estimated that uncollectible
accounts would amount to 6% of accounts receivable. On March 10, an accounts receivable from Mark Dole for $2,200 was
determined to be uncollectible and written off. However, on March 31, Dole received an inheritance and immediately paid his past due
account in full.
Prepare the journal entries made by Pharoah Company on the below dates:
February 28
March 10
March 31
