What adjusting entry is made at the end of the year

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A business makes almost all credit sales. At the end of the year, the business has $485,000 total accounts receivable. This ending balance doesn't include $28,500 specific accounts receivable that were written off during the period. The business estimates that customers will not pay $6,500 of the ending balance of its accounts receivable. What year-end adjusting entry is made?

The business has more cash than it needs for day-to-day operations, so the excess cash is invested in short-term marketable securities that pay interest. During the year, the business receives interest checks, which it records in the interest income account. At the end of the year, $48,500 interest has been earned but not yet received. This interest will be included in the interest checks the business receives next year. The business hasn't recorded this earned interest. What adjusting entry is made at the end of the year?

Reference no: EM13535109

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