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7 September, 23:09

Metlock, Inc. had net sales in 2020 of $1,430,300. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $239,200 debit, and Allowance for Doubtful Accounts $3,780 credit. Assume Metlock prepares an aging schedule that estimates total uncollectible accounts at $27,500. Prepare the entry to record bad debt expense

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  1. 7 September, 23:38
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    The journal entry are as follows:

    Bad debt expense A/c Dr. $23,720

    To Allowance for doubtful accounts $23,720

    (To record the bad debt expense)

    Workings:

    Bad debt expense:

    = Total uncollectible accounts - Allowance for Doubtful Accounts (Credit balance)

    = $27,500 - $3,780

    = $23,720
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