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QUESTION 1. (30 POINTS) Delta Co. reports the following financial information before adjustments on December 31, 2020. Dr. Cr. 100,000 Accounts Receivable Allowance for Doubtful

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QUESTION 1. (30 POINTS) Delta Co. reports the following financial information before adjustments on December 31, 2020. Dr. Cr. 100,000 Accounts Receivable Allowance for Doubtful Accounts 2,000 Required a) Prepare the journal entry to record Bad Debt Expense assuming that the company estimates bad debts at 3% of accounts receivable, and calculate the cash realizable value for Accounts Receivable. (10 points). Explain your solution using T-accounts (5 points) b) Prepare the journal entry to record the write-off of $1,500 from accounts receivable and calculate the cash realizable value for Accounts Receivable after the write-off. (10 points) Explain your solution using T-accounts (5 points) Solution a) JOURNAL ENTRY DATE ACCOUNT TITLES DEBIT CREDIT Cash realizable value for Accounts Receivable Explanation using T-accounts: 1 2 3 5 6 8 9 10 111 12 13 14 15 1 1 Final Week Assessment (20%) b) JOURNAL ENTRY DATE ACCOUNT TITLES DEBIT CREDIT Cash realizable value for Accounts Receivable 1 Explanation using T-accounts

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