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At the end of the current year, Accounts Receivable has a balance of $685,000; Allowance for Doubtful Accounts has a credit balance of $9,000; and
At the end of the current year, Accounts Receivable has a balance of $685,000; Allowance for Doubtful Accounts has a credit balance of $9,000; and net sales for the year total $460,000. Using the aging of receivables method, the balance of the Allowance for Doubtful Accounts is estimated as $50,000. Determine the following: Using the Percent of Sales Method and using 2% of net sales, what is the amount of the adjusting entry for uncollectible accounts? Using the Analysis of Receivables Method, what is the amount of the adjusting entry for uncollectible accounts
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