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Plz answer it and explain plz. Show all calculation and table or formula. Thx Wasson Corp had the following items in its unadjusted trial balance

Plz answer it and explain plz. Show all calculation and table or formula. Thximage text in transcribed

Wasson Corp had the following items in its unadjusted trial balance at December 31: Debit Credit Sales, cash $88,000 Sales, credit 120,000 Accounts receivable $96,000 Allowance for doubtful accounts 1,000 Required Prepare the adjusting entry to estimate bad debts under each of the following independent situations. a. Bad debts are estimated to be 8% of credit sales. b. An analysis shows that 8% of outstanding accounts receivable will not be collected. c. Prepare a current asset section of the balance sheet under the (a) and then (b) assumptions

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