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Chapter 2
Accounting for Receivables
Application Questions Group B
AP-1B(
2
)
On December 31, 2016, Mann Company’s accounts receivable ledger showed an ending
balance of $40,000. The company estimates that $2,000 of accounts receivable will become
uncollectible. Prepare a journal entry to record the estimation of bad debt.
Date
Account Title and Explanation
Debit
Credit
AP-2B (
2
)
On December 31, 2016, your company decides that an allowance for doubtful accounts is
required in the amount of $6,000. There is a $1,000 debit balance in the account. Prepare the
journal entry to set up the required allowance.
Date
Account Title and Explanation
Debit
Credit
