Question
A trial balance before adjustment included the following: DebitCredit Accounts receivable$142,000Allowance for doubtful accounts $1,300Sales 541,000Sales returns and allowances 6,700 Preparejournal entries assuming that the
A trial balance before adjustment included the following:
DebitCreditAccounts receivable$142,000Allowance for doubtful accounts
$1,300Sales
541,000Sales returns and allowances
6,700
Preparejournal entries assuming that the estimate of uncollectible is determined by taking
(A)7% of gross accounts receivable(Credit account titles are automatically indented when the amount is entered.Do not indent manually.
(B)1% of gross accounts receivable (assuming a $1,300debit allowance account balance).(Credit account titles are automatically indented when the amount is entered.Do not indent manually.)
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