Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 8 - Reporting and Analyzing Receivables - Exercises - Page 430: E8-4

Answer

Journal entries: (a) Bad debts expense 900 dollars Accounts receivable - banner 900 dollars (b) Bad debts expense 7,500 dollars Allowance for doubtful account 7,500 dollars

Work Step by Step

(a) To record write-off of Banner's account (b) To adjust allowance account to total estimated uncollectible
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