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  3. at the end of the year, the m. i. evercool company

At the end of the year, the M. I. EverCool Company showed the following selected...

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Accounting

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At the end of the year, the M. I. EverCool Company showed the following selected account balances: Sales (all on credit). Accounts Receivable. ................ Allowance for Doubtful Accounts..... (All Normal Balances) .$400,000 900,000 ........... 42,000 Required: 1. Assume the company estimates that 1% of all credit sales will not be collected a. Prepare the proper journal entry to recognize the expense involved. Assume the company estimates that 5% of its accounts receivable will never be collected. a. Prepare the proper journal entry to recognize the expense involved. Under the assumptions above, give the proper journal entries for the following events. June 3 John Shifty, who owes us $900, informs us that he is broke and cannot pay. We believe him. We write off the account Nov. 9 John Shifty has won the lottery and is willing to pay off all his old debts. He drops off a $900 cash payment. We reinstate the account and record the payment

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