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The ledger of the Ramirez Company at the end of the current year shows Accounts Receivable of $200,000. An aging analysis of the company's Accounts
The ledger of the Ramirez Company at the end of the current year shows Accounts Receivable of $200,000. An aging analysis of the company's Accounts Receivable indicates that 8% of it are estimated to be uncollectable. (12 points. Show calculations, indicate which question your answer is related to) Instructions: (a) If Allowance for Doubtful Accounts has a credit balance of $3,000 before adjustment, how much is required as the adjustment to record bad debts for the period? Prepare an adjusting entry at the end of the period to record estimated bad debt expense. (b) If Allowance for Doubtful Accounts has a debit balance of $3,000 before adjustment, how much is required as the adjustment to record bad debts for the period? Prepare an adjusting entry at the end of the period to record estimated bad debt expense
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