3. Claireco uses the allowance method to write off all bad debts. On 12/31/23 an...
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3. Claireco uses the allowance method to write off all bad debts. On 12/31/23 an aged accounts receivable indicated that bad debt expense would be $35,000. The balance in the Allowance account on that date was a debit of $8,000. It was also estimated that the bad debts expense for the year would be 1% of the years credit sales of $40,000,000. Required: 8 a. Assume that you want to inform the banking industry what your bad debt exposure will be, make the journal entry required on 12/31/23. b. Assume that you want to inform the stockholders what your Id debt expense will be, make the required journal entry on 12/31/23
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3. Claireco uses the allowance method to write off all bad debts. On 12/31/23 an aged accounts receivable indicated that bad debt expense would be $35,000. The balance in the Allowance account on that date was a debit of $8,000. It was also estimated that the bad debts expense for the year would be 1% of the years credit sales of $40,000,000. Required: 8 a. Assume that you want to inform the banking industry what your bad debt exposure will be, make the journal entry required on 12/31/23. b. Assume that you want to inform the stockholders what your Id debt expense will be, make the required journal entry on 12/31/23 