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Sheridan Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 1%...

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Accounting

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Sheridan Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $428,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,100. (a) Your answer has been saved. See score details after the due date. Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bad Debt Expense 2180 Allowance for Doubtful Accounts 2180 List of Accounts Attempts: 1 of 1 used (b) If the allowance for doubtful accounts had a debit balance of $850 instead of a credit balance of $2,100, determine the amount to be reported for bad debt expense. Bad Debts Expense $

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