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You are auditing accounts receivable and the client informed you that it uses the allowance method. The client estimates that 2% of all receivable balance
- You are auditing accounts receivable and the client informed you that it uses the allowance method. The client estimates that 2% of all receivable balance is uncollectible. You are provided with the following information: Accounts receivable balance - $50,000
Allowance for doubtful account - $750
- Determine if the allowance account balance is reasonable and if not, propose an adjusting entry to address the deficiency.
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Financial Accounting
Authors: Carl Warren, James M. Reeve, Philip E. Fess
8th Edition
0324025394, 978-0324025392
