Question
Provide Year-end adjusting journal entries for CDC Inc. 1. The outstanding A/R from ABC ltd is uncollectible. The business ( CDC inc) uses the allowance
Provide Year-end adjusting journal entries for CDC Inc.
1. The outstanding A/R from ABC ltd is uncollectible. The business ( CDC inc) uses the allowance method to determine bad debt expense. An appropriate allowance for the year ended December 31, 2020, would be 4% of the balance in accounts receivable as of December 31, 2020. (Balance of A/R at Dec 31st, 2020 is 55,000)
2. CDC inc has not received an invoice for December telephone or utilities. Estimated amounts will be similar to November's invoices. No entry is required for GST. (November amount is $5k)
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