week 3 all - $9,900 Allowance for Doubtful Accounts...

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Exercise E-3
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a) No adjusting entry is required since under the Direct Write-off Method, the amount that was written off is directly debited to the Bad Debts Expense b) Debit Credit 1.)Dec. 31 Bad Debts Expense $8,100 [($840,000 - $30,000) X 1%] Allowance for Doubtful Accounts $8,100 2.)Dec. 31 Bad Debts Expense
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Unformatted text preview: $9,900 Allowance for Doubtful Accounts $9,900 [($120,000 X 10%) - $2,100] c1.) Dec. 31 Bad Debts Expense $6,075 [($840,000 - $30,000) X .75%] Allowance for Doubtful Accounts $6,075 2.)Dec. 31 Bad Debts Expense $7,400 Allowance for Doubtful Accounts $7,400 [($120,000 X 6%) + $200]...
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This note was uploaded on 04/24/2011 for the course ACCOUNTI 281 taught by Professor Joey during the Spring '10 term at University of Phoenix.

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week 3 all - $9,900 Allowance for Doubtful Accounts...

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