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Mazle Supply Company uses the percent of accounts recelvable method. On December 3 1 , it has outstanding accounts recelvable of $ 8 7 ,

Mazle Supply Company uses the percent of accounts recelvable method. On December 31, it has outstanding accounts recelvable of
$87,500, and it estimates that 6% will be uncollectible.
Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts
has:
(a) a $1,488 credit balance before the adjustment.
(b) a $438 debit balance before the adjustment.
Journal entry worksheet
Prepare the year-end adjusting entry to record bad debts expense under the
assumption that the Allowance for Doubtful Accounts has a $1,488 credit
balance before the adjustment.
Note: Enter debits before credits.
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