Suppose a company records a credit sale to a new customer in 2016. In 2017, the company

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Suppose a company records a credit sale to a new customer in 2016. In 2017, the company discovers the customer is bankrupt; the company will be unable to collect its receivable from the customer. The bad debt expense for this customer is recorded in 2017. What are the accounting problems with this situation? Is recording the bad debt expense in 2017 incorrect?
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Horngrens Accounting Volume 1

ISBN: 9780135359709

11th Canadian Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol Meissner, JoAnn Johnston, Peter Norwood

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