Financial and Managerial Accounting
Financial and Managerial Accounting
9th Edition
ISBN: 9781264098583
Author: Wild, John J.
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 7, Problem 6DQ
To determine

Allowance for doubtful account: It refers to the amount that is use to keep aside by the company as a provision for the part of accounts receivable that may go uncollectible.

Bad debts: It refers to the amount that was expected to be received on credit sales but went uncollectible. It is a loss to the company.

To explain: The reason of bad debt expense account usually not have the same adjusted balance as the allowance for doubtful accounts.

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