On June 30

question 34

Essay

On June 30
(the end of the period), Brown Company has a credit balance of $2,275 in Allowance for Doubtful Accounts. An evaluation of accounts receivable indicates that the proper balance should be $30,025. Journalize the appropriate adjusting entry.

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Definitions:

Financing Activities

Transactions related to raising capital, repaying loans, and paying dividends, reflecting in the cash flow from financing section of a firm's cash flow statement.

Distributing Cash

Refers to the process of delivering or allocating cash holdings to various parties, such as dividends to shareholders or payments to creditors.

Issuing Debt

Refers to the process by which a corporation or government raises capital by selling bonds, bills, or notes to investors.