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Homework answers / question archive / The trial balance before adjustment of XYZ Company reports the following balances:            Dr

The trial balance before adjustment of XYZ Company reports the following balances:            Dr

Accounting

The trial balance before adjustment of XYZ Company reports the following balances:

 

 

 

     Dr.  

      Cr.   

Accounts receivable

$100,000

 

Allowance for doubtful accounts

 

$    2,500

Sales (all on credit)

 

750,000

Sales returns and allowances

40,000

 

Instructions

Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivable and (2) 1% of net sales.

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