Question: ABC computes bad debt based on the allowance method. They determine their current years (12/31/XX) balance estimation to be a credit of $45,000. The previous

ABC computes bad debt based on the allowance method. They determine their current years (12/31/XX) balance estimation to be a credit of $45,000. The previous period had a credit balance in Allowance for Doubtful Accounts of $12,000. a. What should be the reported figure in the adjusting entry for the current period? b. And what is the formal journal entry? c. T-account it

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