At each calendar year end, Mazie Supply Co. uses
Question # 00767847
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Updated on: 06/26/2020 08:50 AM Due on: 07/11/2020
1.At each calendar year end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2013, it has outstanding accounts receivable of $ 55,000, and it estimates that 2% will be uncollectible. Prepare the adjusting entry to record bad debts expense for year 2013 under the assumption that the Allowance for Doubtful Accounts has
(a) A $ 415 credit balance before the adjustment
(b) A $ 291 debit balance before the adjustment.
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