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If Allowance for Doubtful Accounts has a credit balance of AED 1600 in the trial balance, journalize the adjusting entry at 31st December, 2018, assuming
If Allowance for Doubtful Accounts has a credit balance of AED 1600 in the trial balance, journalize the adjusting entry at 31st December, 2018, assuming doubtful debts are expected to be: (i) 1% of net sales, and 1600/1% = (ii) 10% of accounts receivable. (7 marks x 2 = 14 marks). 1600/10% = 160 Journalize the above adjusting entries to record the estimate of uncollectible accounts showing clearly your calculations.
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