'Aje' presentation slideshows

Solution: the Allowance Method

In the year of sale, the AJE to record estimate for all future uncollectibles in 2006 (ex: 4% of sales): Bad Debt Expense 4,000 ADA 4,000 The General JE during 2007 , when a specific A/R is deemed uncollectible (this is called the write-off of a specific A/R): ADA 1,000

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