Alco Co uses the % of A/R allowance method $300,000 Ending A/R Balance Management estimates 4% uncollectible,
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Alco Co uses the % of A/R allowance method $300,000 Ending A/R Balance Management estimates 4% uncollectible, AFDA has credit balance $3,000 before the adjustment;
1-What is the adjusting entry for Bad Debt Expense? What is the impact to A=L+SE If FAIL to do adjusting entry, what is the impact on the acct? equation?
2-JE for $5,000 needs to be written off for customers who are unable to pay. What is the impact to A=L+SE If FAIL to do adjusting entry, what is the impact on the acct? equation?
3-What is the Net Realizable Value of A/R before and after the write-off?
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