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Marvin Gaye Company has significant amounts of trade accounts receivable. Marvin Gaye uses the allowance method to estimate bad debts instead of the direct write-off
Marvin Gaye Company has significant amounts of trade accounts receivable. Marvin Gaye uses the allowance method to estimate bad debts instead of the direct write-off method. During the year, some specific accounts were written off as uncollectible, and some that were previously written off as uncollectible were collected.
requirement:
Discuss how over-estimated allowance for doubtful accounts are adjusted for the tax purpose? Explain with help of an appropriate example?
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