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please give me solutions for 7.27 and 7.28 7.27 Supercredit Corporation has an allowance account with a credit balance of $2,000. Prepare the entry to
please give me solutions for 7.27 and 7.28
7.27 Supercredit Corporation has an allowance account with a credit balance of $2,000. Prepare the entry to recognize bad debt expense if: (a) Bad debts are estimated at 4% of credit sales of $80,000. (b) Bad debts are estimated at 4% of accounts receivable of $90,000. Show what the allowance account would look like after these entries. [CHAP. 7 7.28 Brown Company uses the following categories and probabilities to age its receivables: Age Balance Probability of Default 1-120 days $70,000 Over 120 days 30,000 (a) Determine estimated bad debts. (b) Prepare the necessary entry. Assume that the allowance account has a credit balance of $2,600. 7.29 2% 6% Blue Con Step by Step Solution
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