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At the end of the current year, the accounts receivable account has a debit balance of $1,206,000 and sales for the year total $13,680,000. The
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At the end of the current year, the accounts receivable account has a debit balance of $1,206,000 and sales for the year total $13,680,000.
- The allowance account before adjustment has a credit balance of $16,300. Bad debt expense is estimated at 1/4 of 1% of sales.
- The allowance account before adjustment has a credit balance of $16,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $52,200.
- The allowance account before adjustment has a debit balance of $9,200. Bad debt expense is estimated at 1/2 of 1% of sales.
- The allowance account before adjustment has a debit balance of $9,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $76,400.
Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.
a. $ b. $ c. $ d. $
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