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XYZ Company has the following aging detail as it relates to their Accounts Receivable balance as of the end of February: From past history the
XYZ Company has the following aging detail as it relates to their Accounts Receivable balance as of the end of February: From past history the XYZ has determined that approximately 1% of the balance in the 0 - 30 day age category may be uncollectible; in the 31 - 60 day category approximately 2% may be uncollectible; in the 61 - 90 day category approximately 5% may be uncollectible; in the 91 - 180 day category approximately 40% may be uncollectible; and in the >180 day category approximately 50% may be uncollectible. Assume XYZ Company uses the aging approach to estimate bad debt. Calculate the ending balance for the Allowance for Doubtful Accounts as of the end of February. Calculate the Accounts Receivable, Net balance as of the end of February. Assume the February beginning balance for the Allowance for Doubtful Accounts was $170. Write the adjusting journal entry for February month end. XYZ Company received notice in March that Customer B declared Chapter 7 Bankruptcy and that they would not pay the amount owed to XYZ. Write the journal entry that reflects this write off
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