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Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a balance of $969,000 and sales for the year
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a balance of $969,000 and sales for the year total $10,990,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following independent assumptions: a. The allowance account before adjustment has a negative balance of $(13,100). Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a negative balance of $(13,100). An aging of the accounts in the customer ledger indicates estimated da c. The allowance account before adjustment has a positive balance of $7,500. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a positive balance of $7,500. An aging of the accounts in the customer ledger indicates estimated doubtfu Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a balance of $969,000 and sales for the year total $10,990,000, Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following independent assumptions a. The allowance account before adjustment has a negative balance of $(13,100), Bad debt expense is estimated at 1/2 of 1% of sales b. The allowance account before adjustment has a negative balance of $(13,100). An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $41,900 c. The allowance account before adjustment has a positive balance of $7,500. Bad debt expense is estimated at 3/4 of 1 of sales d. The allowance account before adjustment has a positive balance of $7,500. An aging of the accounts in the customer ledger andicates estimated doubtful accounts of $62,300
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