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REQUIRED: Record the January 1 credit balance of $54,200 in aT account for Allowance for Doubtful Accounts. A. Journalize the transactions. For the December 31
REQUIRED:
- Record the January 1 credit balance of $54,200 in aT account for Allowance for Doubtful Accounts.
- A. Journalize the transactions. For the December 31 adjusting entry, assume the $1,450,000 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for a listing of the account titles the company uses.
B. Post each entry that affects the following selected T accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense.
- Determine the expected net realizable value of the accounts receivable as of
- December 31 (after all of the adjustments and the adjusting entry).
- Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables the adjusting entry on December 31 had been based on an estimated expense of of 1% of the sales of $13,200,000 for the year, determine the following:
- Bad debt expense for the year.
- Balance in the allowance account after the adjustment of December 31.
- Expected net realizable value of the accounts receivable as of December
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