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eBook Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $755,000 and net sales
eBook
Providing for Doubtful Accounts
At the end of the current year, the accounts receivable account has a debit balance of $755,000 and net sales for the year total $8,560,000.
The allowance account before adjustment has a credit balance of $10,200. Bad debt expense is estimated at 1/2 of 1% of net sales.
The allowance account before adjustment has a credit balance of $10,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $32,600.
The allowance account before adjustment has a debit balance of $6,200. Bad debt expense is estimated at 1/4 of 1% of net sales.
The allowance account before adjustment has a debit balance of $6,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $51,500.
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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