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14 September, 00:13

A company has $321,000 in credit sales. the company uses the allowance method to account for uncollectible accounts. the allowance for doubtful accounts now has an $8,150 debit balance. if the company estimates 5% of credit sales will be uncollectible, what will be the amount of the journal entry to record estimated uncollectible accounts?

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  1. 14 September, 00:19
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    321,000*0.05=16,050

    Adjusted balance

    16,050+8,150=24200

    Journal entry

    Bad debt expenses (Dr 16050)

    Allowance for doubtful accounts (Cr 16050)
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