Question
Pharoah Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $440000 and credit sales are $1760000. Management estimates that
Pharoah Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $440000 and credit sales are $1760000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Pharoah Company make if the Allowance for Doubtful Accounts has a credit balance of $4400 before adjustment?
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Just In Time Accounting How To Decrease Costs And Increase Efficiency
Authors: Steven M. Bragg
3rd Edition
0470403721, 978-0470403723
