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Discount Mart Utilizes the Allowance Method of Accounting for Uncollectible

question 47

Essay

Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December 12 the company receives a $550 check from Chad Thomas in settlement of Thomas's $1,100 outstanding accounts receivable. Due to Thomas's failing health he is closing his company and is expecting to make no further payments to Discount Mart. Journalize this declaration.


Definitions:

Incontinent

Unable to control the bladder or bowel.

Anus

The opening at the end of the digestive tract through which feces leave the body.

Paralysis

The inability to control movement or sensation in some or all of the body, usually caused by sickness, toxins, or physical harm.

Stroke

A medical condition caused by the interruption of blood flow to the brain, leading to brain damage.

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