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Longbine Company's Ledger at the End of the Current Year

question 252

Essay

Longbine Company's ledger at the end of the current year shows Accounts Receivable of $150,000.
Instructions
a. If Allowance for Doubtful Accounts has a credit balance of $3,000 in the trial balance and bad debts are expected to be 4% of accounts receivable, journalize the adjusting entry for the end of the period.
b. If Allowance for Doubtful Accounts has a debit balance of $3,000 in the trial balance and bad debts are expected to be 4% of accounts receivable, journalize the adjusting entry for the end of the period.


Definitions:

Symbolic Interaction Theory

A sociological perspective that focuses on the meanings individuals attach to objects, events, and behaviors, emphasizing the role of communication in shaping social reality.

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