Inland Equipment uses the allowance method to account for bad debts. On December 31, 2013, Allowance for

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Inland Equipment uses the allowance method to account for bad debts. On December 31, 2013, Allowance for Doubtful Accounts has a $600 credit balance. Journalize the year-end adjusting entry for bad debts assuming the following independent scenarios:

1. Inland Equipment estimates bad debts as Vi of 1% of net credit sales. Net credit sales for the year equal $550,000.

2. Based on an aging of Accounts Receivable, Inland Equipment estimates that bad debts will equal $2,575.

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Financial Accounting

ISBN: 978-0132889711

1st Canadian Edition

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

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Question Posted: Jul 08, 2015 02:34 AM

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Inland Equipment uses the allowance method to account for bad debts. On December 31, 2013, Allowance for

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Financial Accounting

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