Paul Anchor, Incorporated estimated that bad debt expense would equal 4% of the ending balance of accounts
Paul Anchor, Incorporated estimated that bad debt expense would equal 4% of the ending balance of accounts receivable for the current year. This year’s ending balance of accounts receivable amounted to $ 2,500,000. There was a $ 69,000 credit balance in the allowance for uncollectible accounts prior to the year- end adjustment. Prepare the adjusting journal entry to record the bad debt provision for the current year. Accounts Receivable Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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