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1 December, 00:48

Craigmont uses the allowance method to account for uncollectible accounts. its year-end unadjusted trial balance shows accounts receivable of $154,500, allowance for doubtful accounts of $1,165 (credit) and sales of $1,175,000. if uncollectible accounts are estimated to be 4% of accounts receivable, what is the amount of the bad debts expense adjusting entry?

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  1. 1 December, 04:33
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    154,500*0.04=6,180

    Adjusted balance

    6,180-1,165=5,015

    Journal entry

    Bad debt expenses (Dr 5015)

    Allowance for doubtful accounts (Cr 5015)
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