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Allowance Method of Accounting for Bad debts- Comparison of the Two Approaches ...

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Accounting

Allowance Method of Accounting for Bad debts- Comparison of the Two Approaches image
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for Bad Guzman Inc, had the following data avaiable for 2017 (before making any adjustments): Accounts receivable, 12/31/17 Alowance for doubtful accounts $322,600 868.000 Required: 1. Identify and analyze the adjustment to recognize bad debts under the following assumptions (a) bad didts expense is expected to be 2% of net credit sales for the year. How does this entry affect the accounting equation If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement itens is negative, Le, a decrease, be sure to enter the answer with a minus sign, Remember: if a cen it will have the effect of Stock Accounts Statement(s) How does this entry affect the accounting equation

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