During 2015, a major customer of Kloske Company
Question # 00108549
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Updated on: 09/26/2015 11:02 AM Due on: 10/26/2015
During 2015, a major customer of Kloske Company declared bankruptcy. This particular customer owed $40,000 on account to Kloske at the time of bankruptcy. In reaction to the customer's bankruptcy, Kloske wrote off the entire $40,000 of the customer's account as a loss. The president is concerned about how to report the loss on the company's income statement.
Prepare a short memo that summarizes how to report the $40,000 loss on the financial statements.
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Rating:
/5
Solution: During 2015, a major customer of Kloske Company