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A small engine shop uses the aging of accounts method to estimate its bad debt expense. At the end of the current year, an aging
A small engine shop uses the aging of accounts method to estimate its bad debt expense. At the end of the current year, an aging analysis revealed the following:
Sammy's Small Engine Shop uses the aging of accounts receivable method to estimate its bad debts expense On December 31 of the current year, an aging analysis of accounts receivable revealed the following: Accounts Estimated 48 a) Calculate the amount of the allowance for doubtful accounts that should appear on the t balance s Accounts Estimated b)The balance of the allowance for doubtful accounts on January 1 of the current year was $36,800 The accounts receivable written off during the current year totaled $40,200 the journal entry showing the total accounts written off for the year c) Calculate the bad debts expense that should be reported on the current year's income s d) Prepare the adjusting entry to record the bad debts expense on December 31 of the current yearStep by Step Solution
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