Question
5. Mrs. T's Pizza Shop had the following account balances at October 31, 2019: $1,150,000 $35,000 $945,000 Accounts Receivable *Allowance for doubtful accounts Credit
5. Mrs. T's Pizza Shop had the following account balances at October 31, 2019: $1,150,000 $35,000 $945,000 Accounts Receivable *Allowance for doubtful accounts Credit Sales for Oct. 2019 *Before any estimate uncollectibles are taken into account. Mrs. T is considering the following methods of estimating doubtful accounts expense for Oct. 2019: Based on credit sales at 3% Based on accounts receivable at 6% (A) Determine the amount that Mrs. T should charge to Bad Debts Expense under each method. (B) Record the journal entry for Bad Debt Expense on 10/31/19. % of Accounts Receivables (25 PTS)
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Financial Accounting
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
1st Canadian Edition
9780132147538, 132889714, 013214753X , 978-0132889711
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