The Taipei company uses the percentage of accounts receivable method to estimate bad debts, and as of January 1, 2021, the amount of Allowance for Doubtful Accounts is $400 (debit balance). On March I", the customer Mr. Wang's payment of $15,000 could not be recovered, but on March 29t, the customer Mr. Wang paid part of the payment of $10,000, and the rest could not be paid. As of December 31 for the year, the balance of accounts receivable was
300,000 and estimated doubtful accounts were approximately 2% of net accounts receivable.
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