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The account balances of Sam Company at December 31, 2021, the end of the current year, show Accounts Receivable $190,000; Allowance for Doubtful Accounts $3,000
The account balances of Sam Company at December 31, 2021, the end of the current year, show Accounts Receivable $190,000; Allowance for Doubtful Accounts $3,000 (credit); Sales $1,400,000; Sales Returns and Allowances $49,000; and Sales Discounts $19,000. Assuming bad debts are estimated to be 1.5% of net sales, the adjusting entry at December 31, 2021:
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
