On June 30th (The End of the Period) Brown Company

question 108

Short Answer

On June 30th (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.
Jun 30th Bad Debt Expense 27,750
Allowance for Doubtful Accounts 27,750

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Definitions:

Runout Tolerances

Specifies the limits within which the variation of a surface's location and the feature's circularity must be contained as it rotates around a datum axis.

Datum Feature

A physical feature of a part that acts as a reference for measurement and geometry during machining or inspection processes.

RFS

Requirement for the feature size; a specification in geometric tolerancing where size is a factor.

Runout Tolerance

A type of geometric tolerance that controls the variation of a feature's surface as it rotates about a datum axis.