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Business, 23.12.2021 01:40 ramzieboy13
Sheridan Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $419,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,968. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $825 instead of a credit balance of $2,968, prepare the adjusting journal entry for bad debt expense.
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Sheridan Company uses the percentage-of-receivables basis to record bad debt expense and concludes t...
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