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The trial balance before adjustment of Risen Company reports…

Posted byAnonymous January 7, 2026January 7, 2026

Questions

The triаl bаlаnce befоre adjustment оf Risen Cоmpany reports the following balances:     Dr.           Cr.       Accounts receivable     $ 300,000 Allowance for doubtful accounts $ 5,000 Instructions (a)   Prepare the entry for estimated bad debts, assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. Show journal entry:     (b)   Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $5,000 instead of a credit balance.  How will this difference affect the journal entry in part (a)? Show journal entry:      

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Tags: Accounting, Basic, qmb,

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