Solution:
No. | Account title | Debit | Credit |
(a) | Bad debt expense ($361400*3% - $3039) | $7803 | |
Allowance for doubtful accounts | $7803 | ||
(b) | Bad debt expense ($361400*3% + $979 | $11821 | |
Allowance for doubtful accounts | $11821 |
Metlock, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of...
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