Business, 02.04.2021 19:20 epicriderexe

Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $119,000 of services on account. In 2021, the company wrote off uncollectible accounts of $4,800. By the end of 2021, cash collections on accounts receivable totaled $100,800. Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will prove uncollectible. Required:
a. What journal entry did Pincus record to write off uncollectible accounts during 2021?
b. What journal entry should Pincus record to recognize bad debt expense for 2021?

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Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of...

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