Bay company began using the allowance method in 2014 on, Financial Accounting

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Bay company began using the allowance method in 2014 on

Bay Company began using the allowance method in 2014. On January 1, 2014, Bay had a $3,200 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During 2014, Bay provided $27,000 of service on account. The company collected $22,000 cash from account receivable. Uncollectible accounts are estimated to be 2% of sales on account.

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Financial Accounting: Bay company began using the allowance method in 2014 on

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