10. At December 31 of the current year, a company reported the following: Total credit...
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10. At December 31 of the current year, a company reported the following: Total credit sales for the current year are $620,000. Accounts receivable balance at December 31, end of current year is $190,000 Allowance for Doubtful Accounts balance at December 31 prior to recording the bad debt adjusting entry is a $1,500 credit balance. Prepare the necessary adjusting entries to record bad debts expense under each of the separate assumptions (a) The company uses the percent of sales method to estimate bad debt expense. It is estimated that 1.5% of credit sales will prove to be uncollectible. Two (2) points Date Account Titles and Explanation Debit Credit (b) The company used the percent of receivables method to estimate bad debt expense. It is estimated that 5% of accounts receivable will prove to be uncollectible. Two (2) points Date Account Titles and Explanation Debit Credit
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