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Estimates on the Balance Sheet and Income Statement LO 8-2 E8-9 Recording and Determining the Effects of Write-Offs, Recoveries, and Bad Debt Expense (The following
Estimates on the Balance Sheet and Income Statement LO 8-2 E8-9 Recording and Determining the Effects of Write-Offs, Recoveries, and Bad Debt Expense (The following information applies to the questions displayed below. Fraud Investigators Inc. operates a fraud detection service. ] a. On March 31, 10 customers were billed for detection services totaling $25,000. b. On October 31, a customer balance of $1,500 from a prior year was determined to be uncollectible and was written off. c. On December 15, a customer paid an old balance of $900, which had been written off in a prior year. d. On December 31, $500 of bad debts were estimated and recorded for the year
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