Bradford Company's accounting records on December 31, 2013, provide the following information (prior to adjustment): Required: 1.

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Bradford Company's accounting records on December 31, 2013, provide the following information (prior to adjustment):

Bradford Company's accounting records on December 31, 2013, provide the

Required:
1. Prepare the journal entries to record the estimate of Bradford's bad debt expense for 2013 assuming:
a. Bad debts are estimated to be 2% of net credit sales.
b. Bad debts are estimated to be 5% of gross accounts receivable.
2. Next Level Discuss the advantages and disadvantages of the balance sheet and income statement approaches to estimating bad debt.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Intermediate Accounting Reporting and Analysis

ISBN: 978-1111822361

1st edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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