Balance sheet approach to estimate bad debts

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DOUBTFUL ACCOUNTS 8. At the end of each year, Schnecksville Inc. the balance sheet approach to estimate bad debts. On December 31, 2014, it has outstanding accounts receivable of $176,600 and estimates that 3.5% will be uncollectible. a. Give the adjusting entry to record bad debts expense for 2014 under the assumption that the Allowance for Bad Debts had a $1,470 credit balance before the adjustment. b. Give the adjusting entry to record bad debts expense of 2014 under the assumption that the Allowance for Bad Debts had a $1,235 debit balance before the adjustment.

Reference no: EM131063399

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