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Mcdermit company is using the income statement approach for estimating the bad debts. For the year ending December 31, 2019 credit sales amounted to $1,500,000.
Mcdermit company is using the income statement approach for estimating the bad debts. For the year ending December 31, 2019 credit sales amounted to $1,500,000. The company's policy is to estimate bad debts as a percentage of credit sales. The percentage for 2019 is 0.75. Journal entry to record the allowance for bad debts would be:
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Financial Accounting For Executives And MBAs
Authors: Wallace, Simko, Ferris
4th Edition
1618531980, 9781618531988
