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Business, 04.04.2020 11:33 denjayjr681
Exercise 7-5A Analyzing financial statement effects of accounting for uncollectible accounts using the percent of revenue allowance method LO 7-1 Grover Inc. uses the allowance method to account for uncollectible accounts expense. Grover, Inc. experienced the following four accounting events in Year 1: Recognized $71,000 of revenue on account. Collected $65,000 cash from accounts receivable. Wrote off uncollectible accounts of $650. Recognized uncollectible accounts expense. Grover estimated that uncollectible accounts expense will be 2 percent of sales on account.
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