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At the end of the current year, Accounts Receivable has a balance of $550,00; Allowance for Doubtful accounts has a credit balance of $5,500; and
At the end of the current year, Accounts Receivable has a balance of $550,00; Allowance for Doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. An analysis of receivables estitmates uncollectible receivables at $25,000.
(a) Journalize the adjusting entry for bad dept expense (b) determine the adjusted balances of 1) Accounts receivable, 2) Allowance for Doubtful Accounts, 3) Bad Debt Expense and 4) the net realizable value of accounts receivable
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