What is adjusting entry to estimate bad debts assuming aging

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Reference no: EM132814895

Cash Sales.                             $188,000 credit

Credit Sales.                          $275,000 credit

Acct Receivable                      $76,000 debit

Allowance for doubtful accounts  $1,000 credit

Problem 1: What is the adjusting entry to estimate bad debts assuming an aging analysis estimates that 8% of the outstanding accounts receivable will be uncollectible.

Reference no: EM132814895

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