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On December 31,2023, Corotel Companys year-end, the unadjusted trial balance included the following items: ...

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Accounting

On December 31,2023, Corotel Companys year-end, the unadjusted trial balance included the following items:
Account Debit Credit
Accounts receivable $ 2,100,000
Allowance for doubtful accounts 33,000
Sales ($3,030,000 cash sales) $ 11,400,000
Required:
1. Prepare the adjusting entry needed in Corotels books to recognize bad debts under each of the following independent assumptions.
Bad debts are estimated to be 2% of credit sales.
An analysis suggests that 5% of outstanding accounts receivable on December 31,2023, will become uncollectible.On December 31,2023, Corotel Companys year-end, the unadjusted trial balance included the following items:
2. Show how accounts receivable and the allowance for doubtful accounts would appear on the December 31,2023 balance sheet given the facts in the requirement 1(a) for assets especially the current assets.
3. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31,2023 balance sheet given the facts in requirement 1(b).

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