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Answer the following questions in section a, b, and c. Question 4 On December 31, 2016, the unadjusted tr following balances: Accounts receivable Allowance for
Answer the following questions in section a, b, and c.
Question 4 On December 31, 2016, the unadjusted tr following balances: Accounts receivable Allowance for doubtful accounts 1,000 Cr. ial balance of Tarzwell Services showed the $200,000 Sales 700,000 The business has given up trying to collect $5,000 of its accounts receivable but has not yet recorded the write-off entry. The firm uses the allowance method to estimate bad- debt expense. a) Provide the entry for the write-off. b) If the firm uses the percent-of-sales allowance method for recording bad-debt expense, and has experienced an average 6% rate of non-collection based on sales, provide the entry to record bad-debt expense for 2016. Assume that after the firm recorded the $5,000 of write-offs, it determined that 18% of its remaining accounts receivable will be uncollectible under the aging method. Provide the entry to record bad-debt expense. c) General Journal Date 2010 Accounts Debit Credit 5 1Step by Step Solution
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