14. Example Using estimated bad debt percentages, DeCor would calculate the estimated uncollectible amount as follows: x =
15. Example DeCor’s unadjusted balance in the allowance account is a debit of $200. The previous computation shows the desired balance is $2,290. Therefore, the adjusting entry is for $2,290 + 200 = $2,490.
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19. Interest Computation If the note is expressed in days, base a year on 365 days. Even for maturities less than 1 year, the rate is annualized.
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