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Journalize the transactions using the gross and net methods, assuming:
Collection is made within the discount period
Collection is made beyond the discount period
Requirements: Journalize the bad debts expense, and compute for the following:
1. Bad debt expense
2. Allowance for doubtful accounts on December 31
3. Net realizable value of accounts receivable
Requirements: Journalize the bad debts expense, and compute for the following:
1. Bad debt expense
2. Allowance for doubtful accounts on December 31
3. Net realizable value of accounts receivable
Case 5: Aging of receivables
Calachuchi Corporations accounts receivable subsidiary ledger shows the following
information:
The estimated bad debt rates below are based on Calachuchi Corp.s receivable
collection experience.
Requirements: Journalize the bad debts expense, and compute for the following:
1. Bad debt expense
2. Allowance for doubtful accounts on December 31
3. Net realizable value of accounts receivable