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Blue Co. estimates bad debts at 3% of its accounts receivable. The following data is available for October 2020. Allowance for doubtful accounts on October
Blue Co. estimates bad debts at 3% of its accounts receivable. The following data is available for October 2020. Allowance for doubtful accounts on October 1, 2020. 8,500 Accounts receivable on October 1, 2020.... $1,200,000 Customer accounts written off during 2020 15,000 Collection of accounts that had been written off in previous years 4000 Required: Prepare the journal entries required on October 31, 2020 to: 1. Estimate the Bad debts 2. Write-off the accounts receivable 3. Recover bad debts that were written off before
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