Question
The percentage of receivables (balance sheet) procedure is used to estimate bad debts. The current balance in the Allowance for Doubtful Accounts is $500 credit.
The percentage of receivables (balance sheet) procedure is used to estimate bad debts. The current balance in the Allowance for Doubtful Accounts is $500 credit. An aging of the accounts receivable results in a forecast of $1,700 potential bad debts. The adjustment to the Allowance for Doubtful Accounts is:
| $1,200 credit. | ||
| $1,200 debit. | ||
| $1,700 credit. | ||
| $1,700 debit. |
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Modern Auditing
Authors: William C. Boynton, Walter G. Kell
6th Edition
0471596876, 9780471596875
