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2. Gomez Company's year-end unadjusted trial balance shows accounts receivable of $100,000, allowance for doubtful accounts of $600 (credit), and sales of $200,000. a) Prepare
2. Gomez Company's year-end unadjusted trial balance shows accounts receivable of $100,000, allowance for doubtful accounts of $600 (credit), and sales of $200,000. a) Prepare the December 31 year-end adjusting entry to record Bad Debts Expense, assuming Uncollectibles are estimated to be 0.5% of sales. b) Prepare the December 31 year-end adjusting entry to record Bad Debts Expense, assuming Uncollectibles are estimated to be 2% of accounts receivable. 2. Gomez Company's year-end unadjusted trial balance shows accounts receivable of $100,000, allowance for doubtful accounts of $600 (credit), and sales of $200,000. a) Prepare the December 31 year-end adjusting entry to record Bad Debts Expense, assuming Uncollectibles are estimated to be 0.5% of sales. b) Prepare the December 31 year-end adjusting entry to record Bad Debts Expense, assuming Uncollectibles are estimated to be 2% of accounts receivable
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