Record the journal entry for estimating Bad Debts

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Question - Estimating Bad Debts - Percentage of Sales Method FACTS:

Credit Sales 485,000

Allowance for Bad Debts 3,460

XYZ Company estimates its Bad Debts by using the Percentage of Sales Method.

Accounts Receivable $76,200

XYZ Estimates its "Uncollectible Accounts" by taking 3% of net credit sales.

REQUIRED -

1) Record the journal entry for estimating Bad Debts at 12/31/19.

2) Record the journal entry to Write Off J. Smoth's Account for $8,500.

Reference no: EM132796025

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