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Windsor Company has accounts receivable of $120,200 at March 31. An analysis of the accounts shows the following. Credit terms are 2/10, n/30. At March
Windsor Company has accounts receivable of $120,200 at March 31. An analysis of the accounts shows the following. Credit terms are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,540 prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. Windsor estimates that 8% of accounts receivable will become uncollectible. The company is considering using the estimate of bad debts shown below. Prepare the adjusting entry at March 31 to record bad debt expense, assuming that the 8% estimate is used. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) b) Prepare the adjusting entry at March 31 to record bad debt expense, assuming the aging schedule is used. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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