On 1st may 2021, provision for doubtful debts stands at $250,000 for Chloe's Diner. The accounts receivable on 31 March 2022 were $11,100,000. Total bad debt estimated to $850,000. It is required to write off the bad debts and create a provision equal to 5% of the receivables. Requirements 1. Journalize all the required transactions. 2. Explain how you will post it in the financial statements.

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Chloes Diner Journalizing Bad Debt Writeoff and Provision Adjustment Date May 1 2022 Requirements 1 ... View the full answer