On December 31, 2017, Gold, Inc. Accounts Receivable balance was $27,000. In 2018, Gold generated $461,000 in
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On December 31, 2017, Gold, Inc. Accounts Receivable balance was $27,000. In 2018, Gold generated $461,000 in revenue and raised $326,000 in the account. Gold wrote $6,400 receivables uncollectible. Industry experience shows that uncollectible accounts will amount to 2% of accounts receivable.
1. Assume that Gold has an unadjusted credit balance of $1,800 in Allowance for Doubtful Payables on December 31, 2018.
2. Assume that Gold has an unadjusted $1,500 debit balance in the Provision for Doubtful Payables at December 31, 2018.
Record journal entries on December 31, 2018 for bad debt expense using the percentage receivables method.
Related Book For
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian Edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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