Business
Business, 25.03.2021 21:30, 0055babs

Exercise 7-7 Percent of accounts receivable method LO P3 Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $148,500, and it estimates that 5% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $2,525 credit balance before the adjustment. (b) a $743 debit balance before the adjustment.

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Exercise 7-7 Percent of accounts receivable method LO P3 Mazie Supply Co. uses the percent of accoun...

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