Services are provided and clients are expected to pay in advanced. One client has not paid in four months and you find out the client filed bankruptcy. Your company had already issued financial statements for the prevous year and included the $20,000 a monthy account receivable for the services provided lasst year. The companies average sales were $300,000 and there is a 3% allowances for sales. 1. Evaluate whether receipt of this information indicates you have a change in estimate of whether the customer's bankruptcy results in this event condsidered an error in previously issued financial statement. 2. Describe the accounting treatment support with journal entries.
Services are provided and clients are expected to pay in advanced. One client has not paid in four months and you find out the client filed bankruptcy. Your company had already issued financial statements for the prevous year and included the $20,000 a monthy
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