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eBook Show Me HowPrint Item Question Content Area Providing for doubtful accounts At the end of the current year, the accounts receivable account has a

eBook Show Me HowPrint Item
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Providing for doubtful accounts
At the end of the current year, the accounts receivable account has a debit balance of $1,935,000 and sales for the year total $26,710,000.
The allowance account before adjustment has a debit balance of $10,200. Bad debt expense is estimated at 1/2 of 1% of sales.
The allowance account before adjustment has a debit balance of $10,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $175,000.
The allowance account before adjustment has a credit balance of $25,760. Bad debt expense is estimated at 3/4 of 1% of sales.
The allowance account before adjustment has a credit balance of $25,760. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $170,420.
Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.
Assumption Amount
a. $fill in the blank 1
b. $fill in the blank 2
c. $fill in the blank 3
d. $fill in the blank 4

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