Corporation has outstanding accounts receivable

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Reference no: EM13723740

A corporation has outstanding accounts receivable totalling $3,500 as of December 31.

During the year the company had sales on credit of $24,000.

There is also a debit balance of $1,200 in the allowance for doubtful accounts.

Management estimates that 8% of its outstanding receivables will be uncollectible.

Record the balances (labeled “Bal”) and the journal entries, in T-account format, to recognize the above information.

Reference no: EM13723740

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