Question
On December 31 st 2021, prior to adjusting entries, Lobs Inc.s accounts receivable has a balance of 340,000. Lobs Inc. uses the balance sheet approach
On December 31st 2021, prior to adjusting entries, Lobs Inc.s accounts receivable has a balance of 340,000. Lobs Inc. uses the balance sheet approach and estimates that 10% of all outstanding AR will be uncollectible. The balance in the allowance for doubtful accounts is $17,000 prior to adjusting entries.
Provide the relevant adjusting entries on Dec 31st 2021. (6 points)
On Jan 3rd 2022, Lob Inc writes off $10,000 of their AR as bad debt. Provide the relevant transactional journal entries.
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For Heintz/parrys College Accounting, Chapters 1-15, 22nd Edition, [instant Access]
Authors: James A. Heintz, Robert W. Parry
22nd Edition
1305669886, 9781305669888
