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30 September, 19:27

osie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation: Events Affecting Year 1 Provided $45,000 of cleaning services on account. Collected $39,000 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

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  1. 30 September, 20:56
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    The Bad Debt expense will be in year 1;

    Explanation:

    The Bad Debt Expense $45,000*1%=$450

    The journal entry will be

    Bad Debt Expense Dr.$450

    Account Receivable Cr.$450
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