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On December 3 1 , 2 0 1 9 , Mills Manufacturing Ltd . had a $ 1 9 7 , 0 0 0 balance
On December Mills Manufacturing Ltd had a $ balance in its Accounts Receivable and a $ balance in its Allowance for Doubtful Accounts. During the company made total sales of $ of which $ were cash sales. By the end of the year, ills had received payments of $ from its customers on account. The company also wrote off as uncollectible $ of its receivables when it learned that these customers had declared bankruptcy. The company was subsequently able to recover $ From one of these customers. Note that this amount is not included in the cash collections noted above. Management estimates that bad debts expense will be of its credit sales.
Prepare the journal entries to record all the transactions, including the adjustment for bad debts expense at year end. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts.
Account Titles and Explanation
Debit
Credit
To record sales
To record cash collected from customers
To write off accounts receivable
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