The Allowance for Doubtful Account has a $18,700 credit balance prior to adjustment (unadjusted balance)....
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Accounting
The Allowance for Doubtful Account has a $18,700 credit balance prior to adjustment (unadjusted balance). Net credit sales during the year are $1,600,000 and of 8% are estimated to be uncollectible. Accounts Receivable has a balance of $775,700 at the ending of the year. Show the allowance account with the unadjusted balance, adjusting entry and adjusted balance (3 pts); and, calculate the amount of the account receivables that the business expects/estimates will be collectible (2 pts). The Allowance for Doubtful Account has a $18,700 credit balance prior to adjustment (unadjusted balance). Net credit sales during the year are $1,600,000 and of 8% are estimated to be uncollectible. Accounts Receivable has a balance of $775,700 at the ending of the year. Show the allowance account with the unadjusted balance, adjusting entry and adjusted balance (3 pts); and, calculate the amount of the account receivables that the business expects/estimates will be collectible (2 pts).
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