Question

The following items were extracted from the 2012 financial records of Cummins Inc. (dollars in millions):
Allowance for doubtful accounts 12 (cr.)
During the following year, the company wrote off $5 of accounts receivable as uncollectible and then estimated $6 of the year’s receivables to be uncollectible. The company did not recover any previously written-off accounts.
a. Prepare the entry to record the bad debt expense.
b. Compute the final balance in allowance for doubtful accounts.



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  • CreatedAugust 19, 2014
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