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Problem 4: Chapter 8 At December 31, 2019, the trial balance of Malone Company contained the following amounts before adjustments. Credit Debit $180,000 Accounts Receivable
Problem 4: Chapter 8 At December 31, 2019, the trial balance of Malone Company contained the following amounts before adjustments. Credit Debit $180,000 Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $ 1,500 875,000 a) Prepare the adjusting entry at December 31, 2019, to record bad debt expense, assuming that the aging schedule indicates that $10,200 of accounts receivable will be uncollectible. Calculate the net realizable value of Accounts Receivable. b) Repeat part (a), assuming that instead of a credit balance there is a $1,500 debit balance in the Allowance for Doubtful Accounts. Record the journal entry and calculate the net realizable value of Accounts Receivable. c) Prepare the adjusting entry at December 31, 2019, to record bad debt expense, assuming that 2% of Sales will be uncollectible. Calculate the net realizable value of Accounts Receivable. d) Prepare the adjusting entry at December 31, 2019, to record bad debt expense, assuming that 5% of Accounts Receivable will be uncollectible. e) During January 2020, a $2,100 accounts receivable is written off as uncollectible. Prepare the Journal entry to record the write-off. f) The write-off in unexpectedly collected. Record any necessary entries
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