Credit Losses Based on Credit Sales Gregs Company uses the allowance method for recording its...
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Accounting
Credit Losses Based on Credit Sales Gregs Company uses the allowance method for recording its expected credit losses. It estimates credt losses at the percent of credit les which were 100.000 dur the year. On December Allowance for Doubtful Accounts had a credit balance of $12,200 before adjustment a. Prepare the adjusting entry to record the credit losses for the year b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear in the December 31 balance sheet Credit General Journal Date Description Dec 31 Bad Debts Expense Allowance for Doubt Accounts To record allowance for credit losses Debit 27.000 27.000 b. (Do not use negative signs with your answers Current Asse: 150.000 Less Nlowance for Douth Accounts 110.00
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