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Question - Journal entry for Estimation of Doubtful Accounts
The company estimates that 5% of its outstanding accounts receivable will prove to be uncollectible.
2019
2020
Accounts Receivable
2,500,000
2,700,000
Allowance for Bad Debts
125,000.00
135,000.00
Accounts Written - Off
50,000
30,000
No additional accounts are expected to be written off in the next 5 years.
Financial Statement Analysis and Preparation
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