Question
The following account balances were found for Jetson Corp. at the beginning of its fiscal year, January 1, 2020: Accounts Receivable$1,240,250 Allowance for Doubtful Accounts19,220
The following account balances were found for Jetson Corp. at the beginning of its fiscal year, January 1, 2020:
Accounts Receivable$1,240,250
Allowance for Doubtful Accounts19,220
Sales for the year were $8,100,000, of which 60% was on credit, and sales returns were $146,000.Cash collections, excluding recoveries, were $5,416,000.Jetson had also written off $62,500, of which half was later recovered and collected.The company's credit and collection manager has estimated that 6% of outstanding accounts receivable are uncollectible.
Instructions
Calculate the bad debt expense for the year and record the appropriate journal entry.Howdoyourdifferentiate between IFRS and ASPE in that method?
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