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Assume that a company’s bad debts are estimated

01 / 10 / 2021 Projects

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Assume that a company’s bad debts are estimated

Assume that a company’s bad debts are estimated and recorded as 2% of Accountreceivable.Accounts receivable …. $125000Sales revenue…………$1280000Previous balance of Allowance for doubtful accounts ….. $160075% of sales was made on credit.a. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appearon the balance sheet after adjustment.b. Prepare the entry to write off a $1,500 account receivable on January 1 of the next year.c. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appearon the balance sheet immediately after writing off the account in part 2



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