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The records of Quest Company included the following accounts (with normal balances). Cash sales $1,680,000 Credit sales 1,260,000 Balance in accounts receivable, December 31, 2019
The records of Quest Company included the following accounts (with normal balances).
Cash sales
$1,680,000
Credit sales
1,260,000
Balance in accounts receivable, December 31, 2019
252,000
Balance in accounts receivable, December 31. 2020
280,000
Balance in allowance for doubtful accounts, December 31, 2019 (Cr.)
Accounts written off as uncollectible during 2020
4,200
7,000
The company estimates bad debts as 2% of receivablds at year-end to be uncollectible.
Prepare the adjusting entry at December 31, 2020, to adjust the allowance for doubtful accounts.
Date
Account Name
Dec. 31, 2020 Bad Debt Expense
Dr.
Cr.
Allowance for Doubtful Accounts
5.460 x
O
0
V
5.460
x
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
