At the end of $20$X$9,$ SpendCo has accounts receivable of $$70,000,$ of which it estimates $10\%$ will be bad debt. Allowance for Doubtful Accounts has a debit balance of $$4,000.$

A$)$ What does the debit balance in Allowance for Doubtful Accounts imply about $20$X$8?$

B$)$What is the $20$X$9$ adjusting entry for bad debt?

C$)$ What is the term for the difference between the closing balances in Accounts Receivable and Allowance for Doubtful Accounts?

Answer rating: 100% (QA)

A To calculate the adjustment needed for the Allowance for Doubtful Accounts at the end of 20X9 we c... View the full answer