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Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that it's Allowance for Doubtful Accounts should be $ 19,750. The account had an unadjusted credit balance of $ 10,000 at that time.
Required:
Prepare journal entries for each of the following.
a. The appropriate bad debt adjustment was recorded.
b. Later, an account receivable for $ 1,000 was determined to be uncollectible and was written off.
1- the requirement that only transaction data capable of being expressed in terms of money be included in the
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