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At the end of the current year, using the aging of receivable method, the accounts receivable balances totaled $586,750. Management estimated that $15,750 of the
- At the end of the current year, using the aging of receivable method, the accounts receivable balances totaled $586,750. Management estimated that $15,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $375.
Using the attached T-account template (or prepare an equation presentation):
- document the accounts receivable and allowance for doubtful accounts balances, labeling them BAL
- prepare the entry to recognize the estimated bad debt expense
- document the ending balance in the T-accounts (or in the proper column, if using the equation presentation) for the following accounts:
- Accounts Receivable
- Allowance for Doubtful Accounts
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