Maddie and Jordan get into an automobile accident. Maddie agrees to pay for Jordan's car to be repaired in the amount of $1,000 if Jordan does not file an insurance claim. This would be an example of .

Acompany has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 6% of outstanding receivables are uncollectible. the current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. the journal entry to record the adjustment to the allowance account includes a debit to bad debts expense for $4,800. true or false