Write-Off of Uncollectible Accounts section*{CORNERSTONE 5.2} The Rock has credit sales of ($ 500,000) during 2018 and

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Write-Off of Uncollectible Accounts

\section*{CORNERSTONE 5.2}

The Rock has credit sales of $\$ 500,000$ during 2018 and estimates at the end of 2018 that $2 \%$ of these credit sales will eventually default. Also, during 2018 a customer defaults on a $\$ 1,800$ balance related to goods purchased in 2017.

Required:

1. Prepare the journal entry to record the defaulted balance.

2. Prepare the adjusting entry to record the bad debt expense for 2018 .

Cornerstone Exercise

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Cornerstones Of Financial Accounting

ISBN: 9780176707125

2nd Canadian Edition

Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone

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Question Posted: Jun 07, 2024 01:20 AM

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Write-Off of Uncollectible Accounts section*{CORNERSTONE 5.2} The Rock has credit sales of ($ 500,000) during 2018 and

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Cornerstones Of Financial Accounting

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