Lorraine Company's Accounts Receivable Account has a debit balance of $3,600,000, and the Allowance for Doubtful...
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Lorraine Company's Accounts Receivable Account has a debit balance of $3,600,000, and the Allowance for Doubtful Accounts has a debit balance of $8,000 at the end of the year before adjustment. An analysis of their customers' accounts estimates that 2% of year end account receivable will be uncollectible. The adjusting journal entry for doubtful accounts will include: A) Debit Bad Debts Expense $652,000 B) Debit Bad Debts Expense $80,000 C) Credit Allowance for Doubtful Accounts, $64,000 D) Credit Allowance for Doubtful Accounts, $72,000 Lorraine Company's Accounts Receivable Account has a debit balance of $3,600,000, and the Allowance for Doubtful Accounts has a debit balance of $8,000 at the end of the year before adjustment. An analysis of their customers' accounts estimates that 2% of year end account receivable will be uncollectible. The adjusting journal entry for doubtful accounts will include: A) Debit Bad Debts Expense $652,000 B) Debit Bad Debts Expense $80,000 C) Credit Allowance for Doubtful Accounts, $64,000 D) Credit Allowance for Doubtful Accounts, $72,000
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The Adjusting Entry is as follows Journal Entries Date A... View the full answer
Related Book For
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
Posted Date:
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