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Siew Lan uses the allowance method to record bad debts expense. When accounts receivable is aged at the end of December, it is estimated that
Siew Lan uses the allowance method to record bad debts expense. When accounts receivable is aged at the end of December, it is estimated that of Siew Lans accounts receivable will be uncollectable. Accounts receivable at December are $ and the Allowance for doubtful debts has a credit balance of $ Required a Prepare the adjusting journal entry to record bad debts expense for the year ended December. b Determine the amount of the bad debts expense if the balance in the Allowance account is a debit of $ instead of a credit of $ Please explain step by step with explanation.
Siew Lan uses the allowance method to record bad debts expense. When accounts receivable is aged at the end of December, it is estimated that of Siew Lans accounts receivable will be uncollectable. Accounts receivable at December are $ and the Allowance for doubtful debts has a credit balance of $
Required
a Prepare the adjusting journal entry to record bad debts expense for the year ended December.
b Determine the amount of the bad debts expense if the balance in the Allowance account is a debit of $ instead of a credit of $
Please explain step by step with explanation.
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