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During Burns Company's first year of operations, credit sales totaled $172,000 and collections on credit sales totaled $121,000. Burns estimates that bad debt losses will be 2.0% of credit sales. By year-end, Burns had written off $460 of specific accounts as uncollectible. Required: 1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. 2. Show the year-end balance sheet presentation for accounts receivable.
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During Burns Company's first year of operations, credit sales totaled $172,000 and collections on cr...
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