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Galina-37 [17]
3 years ago
7

Accounts Randall Company estimates its bad debts expense by aging its accounts receivable and applying percentages to various ag

e groups of the accounts. Randall calculated a total of $3,000 in possible credit losses as of December 31. Accounts Receivable has a balance of $128,000, and the Allowance for Doubtful Accounts has a credit balance of $500 before adjustment at December 31. What is the December 31 adjusting entry to provide for credit losses
Business
1 answer:
Crazy boy [7]3 years ago
8 0

Answer:

Explanation:

The journal entry will be:

Debit: Bad debt expense $2500

Credit: Allowance for doubtful $2500

Then, we will calculate the net amount of account receivable that should be included in current assets which will be:

Account receivable = $128000

Less: Allowance for doubtful = $500 + $2500 = $3000

Net amount of account receivable = $125000

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I hope my answer helped you.
5 0
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Answer:

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Dafna11 [192]

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Commercial banks, required reserve, loans, deposits, create.

Explanation:

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Commercial Banks make profit by charging a higher interest rate on loan and lower interest rate on deposits. For example: 7.5% interest rate on loan and 2.5% interest rate on deposits. The 5% difference is the bank Profit.

5 0
3 years ago
The step of making a tentative plan in the troop-leading procedure usually has six steps. what is step six?
vladimir1956 [14]
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The basic six steps are:
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It is also advisable to follow the 6 steps by two additional steps which are:
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s2008m [1.1K]

Answer:

The correct answer is A

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7 0
3 years ago
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