Given that the balance in the Allowance for Doubtful Accounts is $100 credit, prepare adjusting entries for

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Given that the balance in the Allowance for Doubtful Accounts is $100 credit, prepare adjusting entries for bad debts based on the following assumptions:
a. Bad debts are to be 5% of net credit sales, or $400.
b. Bad debts should be $400 on the basis of the aging of Accounts Receivable.
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College Accounting A Practical Approach

ISBN: 978-0132564441

11th Canadian Edition

Authors: Jeffrey Slater, Brian Zwicker

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