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Naya [18.7K]
3 years ago
13

ABC Company uses the allowance method for estimating bad debts. Record the following journal entries:

Business
1 answer:
Luba_88 [7]3 years ago
4 0

Answer:

Date       Account titles and Explanations          Debit     Credit

31 Dec    Bad debts expense                              $5,000

                    Allowance for uncollectible accounts           $5,000

              (To record bad debts expense recorded)

5 Mar      Allowance for uncollectible accounts  $1,200

                    Accounts receivable                                       $1,200

              (To record account written off)

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