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ABC computes bad debt based on the allowance method. They determine their current years balance estimation should be a credit of $45,000. The previous period

ABC computes bad debt based on the allowance method. They determine their current years balance estimation should be a credit of $45,000. The previous period had a credit balance in Allowance for Doubtful Accounts of $12,000. 1 What should be the reported figure in the adjusting entry for the current period (this requires a T-account)? 2 And what is the adjusting journal entry (formal journal entry form required)?

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