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  3. 7. a company uses the allowance method to account

7. A company uses the allowance method to account for uncollectible accounts. In a year,...

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Accounting

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7. A company uses the allowance method to account for uncollectible accounts. In a year, the following transactions occurred: - The account of a client for 1.000TL was deemed to be uncollectible and is written off as a bad debt. - Received 1.000 TL cash from that elient whose account had previously been written off as uncollectible. Suppose that the beginning debit balance of Accounts Receivable was 132.000TL and the beginning credit balance of Allowance for Doubtful Accounts Was 1.900TL. It is estimated that bad debts will he 5% of accounts receivable, What would be the adjustment to reord bad debts for the end of the period? a) debit to Bad Debt Expense for 8.450 TL. b) debit to Allowance for Doubtful Accounts for 3.650TL c) debit to Bad Debt Expense for 3.650TL d) credit to Allowance for Doubuful Accounts for 8.450TL

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