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Year round Retreats had the following balances at December 31, 2018,before the year-end adjustments:
Accounts Receivable Allowance for Bad Debts
74,000 1,535
The aging of accounts receivable yields the following data:
Age of Accounts Receivable
0-60 Days Over 60 Days Total Receivables
Accounts Recelvable $71,000 3,000 74,000
Estimated percent uncollectible x 3% x 23%
Requirements
1. Journalize Worldwide'sentry to record bad debts expense for 2018 using the aging-of-receivables method.
2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts.
3. Joumalize Year round's entry to record bad debts expense for 2018 using the aging-of-recevables method.
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Year round Retreats had the following balances at December 31, 2018,before the year-end adjustments:...
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