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The credit manager of Montour Fuel has gathered the following information about the companys accounts receivable and credit losses during the current year Net credit sales for the year Accounts receivable at year-end Uncollectible accounts receivable: $7,000,000 1,750,000 Actually written off during the year Estimated portion of year-end receivables expected to prove $ 93,000 uncollectible (per aging schedule) 84,000 a. Impairment loss is estimated at an amount equal to 2.5 percent of net credit sales. b. Impairment loss is recognized by adjusting the balance in the Allowance for Impairment to the amount indicated in the year-end aging schedule. The balance in the allowance account at the beginning of the current year was $25,000. (Consider the effect of the write-offs during the year on the balance in the Allowance for Impairment.) The company uses the direct write-off method of accounting for uncollectible accounts. c. Prepare one journal entry summarizing the recognition of impairment loss for the entire year under each of the above independent assumptions. (Omit the "S" sign in your response.) General Journal Debit a. Impairment loss Allowance for Impairment b. Impairment loss Allowance for Impairment 93,000 C. Impairment loss 93,000 Accounts receivable

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