Record the sale and cost of goods sold below. Record the sales part first, then the cost of goods sold portion second (like in the PowerPoint).Kings Co. uses the percentage-of-receivables basis in 2021 to record bad debt expense. We're going to walk you through how to calculate accounts receivable in this guide. We'll demystify a myriad of different formulas and ratios you need to know. , we can use the given information from the forecasted balance sheet and income statement. Factoring improves cash flow. A business can use cash currently tied up in receivables to increase sales and take advantage of supplier discounts. Complete Guide to Accounts Receivable for Small Business. It became obvious to King that demand for the product existed.