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At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 916,000 Credit sales 316,000 Its year-end unadjusted trial
At December 31, Folgeys Coffee Company reports the following results for its calendar year.
Cash sales | $ | 916,000 |
Credit sales | 316,000 | |
Its year-end unadjusted trial balance includes the following items.
Accounts receivable | $ | 141,000 | debit |
Allowance for doubtful accounts | 6,600 | debit | |
Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 3% of credit sales, (b) 1% of total sales and (c) 6% of year-end accounts receivable.
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