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Rainbow Company uses the balance sheet approach to estimate uncollectible accounts. By aging the customers' accounts,...

  1. Rainbow Company uses the balance sheet approach to estimate uncollectible accounts. By aging the customers' accounts, it was estimated that $7,325 of the company's month-end accounts receivable would prove to be uncollectible. Calculate the amount that should be debited to the Uncollectible Accounts Expense account in the month-end adjusting entry under each of the following independent assumptions:


A) Under the following independent assumptions, calculate the amount needed as the debit to the Uncollectible Accounts Expense account.

  1. Before making any adjustment, the Allowance for Doubtful accounts has a $635 credit balance. $__6690______________


2. Before making any adjustment, the Allowance for Doubtful accounts has a debit

      balance of $720 $____8045___________

B) Prepare the year-end adjusting entry for the uncollectible accounts using each of the    

above answers.

JE for (A1)

     

     

     

     

     

     

description

JE for (A2)

     

     

     

     

     

     

description

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