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Prior to recording the recovery and collection of a $1, 800 account receivable previously written off and prior to recording the adjusting entry for bad
Prior to recording the recovery and collection of a $1, 800 account receivable previously written off and prior to recording the adjusting entry for bad debt expense for the year, the general ledger reflected the following information: a. Prepare the adjusting entry for bad debt expense using the income statement approach assuming the amount of the bad debt expense is based on 1.6% of net sales b. Prepare the adjusting entry for bad debt expense using the balance sheet approach assuming the amount of bad debt expense is based on 3.0% of the ending accounts receivable. a. Bad debt expense adjusting entry using the income statement approach b. Bad debt expense adjusting entry using the balance sheet approach
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