Discuss fully the following two scenarios. Remember to contribute with analysis to at least two...
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Accounting
Discuss fully the following two scenarios. Remember to contribute with analysis to at least two of your colleagues to obtain full credit.
A companys Accounts Receivable balance at its December 31 year-end is $125,650. its allowance for Doubtful Accounts has a credit balance of $328 before the year-end adjustment. It estimates that 4% of outstanding accounts receivable are uncollectible. The Bad Debts Expense is recorded on December 31 reflecting an amount of $5,026. Explain in a detailed manner how the Bad Debt Expense was calculated.
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