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Exercise 9-13(Algo) Percent of accounts receivable method LO P3 Mazie Supply Company uses...

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Accounting

Exercise 9-13(Algo) Percent of accounts receivable method LO P3
Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of
$92,500, and it estimates that 5% will be uncollectible.
Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts
has:
(a) a $1,573 credit balance before the adjustment.
(b) a $463 debit balance before the adjustment.
Journal entry worksheet
12
Prepare the year-end adjusting entry to record bad debts expense under the
assumption that the Allowance for Doubtful Accounts has a $1,573 credit
balance before the adjustment.
Note: Enter debits before credits.
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