Instructions a. What amount of bad debt expense will Mingenback Company report if it uses...
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Accounting
Instructions a. What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for uncollectibles? b. Assume that Mingenback Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 6% of accounts receivable will become uncollectible. What amount of bad debt expense will Mingenback record if Allowance for Doubtful Accounts has a credit balance of $3,000 ? c. Assume the same facts as in (b), except that there is a $3,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Mingenback record? d. What is the weakness of the direct write-off method of recording bad debt expense
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