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DUE ASAP POINTS IMMEDIATLY The ledger of Montgomery Company at the end of the current year shows Accounts Receivable $80,000; Credit Sales $817,000; and Sales
DUE ASAP POINTS IMMEDIATLY
The ledger of Montgomery Company at the end of the current year shows Accounts Receivable $80,000; Credit Sales $817,000; and Sales Returns and Allowances $49,900. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) If Montgomery uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Montgomery determines that Baruth's $810 balance is uncollectible. If Allowance for Doubtful Accounts has a credit balance of $1,000 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 12% of accounts receivable. If Allowance for Doubtful Accounts has a debit balance of $950 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable
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