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ABC Company have prepared the following aging schedule for the company at December 31, 2019. The company uses the percentage of receivables approach to estimate
ABC Company have prepared the following aging schedule for the company at December 31, 2019. The company uses the percentage of receivables approach to estimate bad debts. Number of Days Outstanding Total 0-30 31-60 61-90 91-120 Over 120 Accounts receivable $375,000 $220,000 $90,000 $40,000 $10,000 $15,000 % uncollectible 1% 4% 8% 16% 30% Prepare journal entries in good format assuming: a) The company has a $1,000 debit balance in the allowance for doubtful accounts account before any adjustment for the current year's bad debt expense. b) The company has a $2,500 credit balance in the allowance for doubtful accounts account at the beginning of the period
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