Question
3.At the end of 20X9, Spend Co has accounts receivable of $70,000, of which it estimates 5% will be bad debt. Allowance for Doubtful Accounts
3.At the end of 20X9, Spend Co has accounts receivable of $70,000, of which it estimates 5% will be bad debt. Allowance for Doubtful Accounts has a debit balance of $3,000.
a.What does the debit balance in Allowance for Doubtful Accounts imply about 20X8?
b.What is the 20X9 adjusting entry for bad debt?
c.What is the term for the difference between the closing balances in Accounts Receivable and Allowance for Doubtful Accounts?
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Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
71051503, 978-1259066511, 1259066517, 978-0071051507
