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Part of learning about Accounts Receivable and the Allowance for Doubtful Accounts is understanding the formatting. Pay attention to the formatting in the example on
Part of learning about Accounts Receivable and the Allowance for Doubtful Accounts is understanding the formatting. Pay attention to the formatting in the example on page 341. Prepare the relevant sections of the Balance Sheet and the Income Statement for Situation A. Prepare the relevant sections of the Balance Sheet and the Income Statement for Situation B. below. In both situations, assume Revenues were $50,000. Situation A The Allowance for Doubtful Accounts had an unadjusted credit balance of $4,000. Accounts Receivable at year end were $100,000, and management determined that uncollectible accounts were $4,500. Situation B The Allowance for Doubtful Accounts had an unadjusted debit balance of $300. Accounts Receivable at year end were $100,000, and management determined that uncollectible accounts were $4,500
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