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  1. business
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  3. in december, a company sold merchandise on account

In December, a company sold merchandise on account for $100 with terms 2/10, n/30. It...

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Accounting

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In December, a company sold merchandise on account for $100 with terms 2/10, n/30. It uses the percentage of receivables basis for estimating uncollectible accounts at year-end. On May 1 of the next year, the company determines that it will not collect the amount due from the customer. Prepare the journal entry to record the write-off on May 1. 98 Allowance for Doubtful Accounts Accounts Receivable 98 Allowance for Doubtful Accounts 100 Accounts Receivable 100 Bad Debts Expense 100 Accounts Receivable 100 100 O Allowance for Doubtful Accounts Bad Debts Expense 100 Accounts Receivable 100 Allowance for Doubtful Accounts 100

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