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During 2015, a company had $ 160,000 of specific accounts written off as uncollectible. Of these accounts written off, receivables totalling $18,000 were subsequently collected. At the end of 2015, an aging of accounts receivable indicated a need for a $40,000 allowance to cover possible failure to collect the accounts currently outstanding. The company makes adjusting entries for uncollectible accounts only at year end.
Question 1: Prepare one journal entry to summarize all accounts written off against the Allowance for Doubtful Accounts during the 2015.
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