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A corporation has outstanding accounts receivable totaling $3,500 as of December 31.
During the year the company had sales on credit of $24,000.
There is also a debit balance of $1,200 in the allowance for doubtful accounts.
Management estimates that 8% of its outstanding receivables will be uncollectible.
Record the balances (labeled “Bal”) and the journal entries, in T-account format, to recognize the above information.
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Familiarise yourself with the Anthonys Orchard company and its current situation; this can be done by exploring each of the tabs across the top of the screen in the Anthony's Orchard case study media.
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