At December 31, 2012, Warm Weather Travel has an Accounts Receivable balance of $91,000. Allowance for Doubtful

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At December 31, 2012, Warm Weather Travel has an Accounts Receivable balance of $91,000. Allowance for Doubtful Accounts has a credit balance of $840 before the year-end adjustment. Service Revenue for 2012 was $600,000. Warm Weather estimates that doubtful-account expense for the year is 1% of sales. Make the year-end entry to record Doubtful-Account Expense. Show how Accounts Receivable and Allowance for Doubtful Accounts are reported on the balance sheet.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Financial accounting

ISBN: 978-0132751124

9th edition

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

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