I am trying to figure out how to do closing entries using allowance method with allowance for doubtfull accounts
I am trying to figure out how to do closing entries using allowance method with allowance for doubtfull accounts
You debit a doubtfull debts expense and credit a provision for doubtful debts. The allowance you make is based on an assessment of accounts outstanding more than ninety days or an assessment of historical defaults as a percentage of accounts receivable or sales
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