Stiller Company uses the allowance method to account for bad debts.In the first year of operations (2014), Stiller sold $540,000 of merchandise on credit, including a $2,500 sale to Bubba LongOn December 31, 2014, to increase the allowance for doubtful accountsOn June 1, 2015, to write off the bad debt.(c)On December 25, 2015, to record the unexpected collection from BubbaLong.

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The Answer of Stiller Company uses the allowance method to account for bad debts.In the first year of operations (2014), Stiller sold $540,000 of merchandise on credit, including a $2,500 sale to Bubba LongOn December 31, 2014, to increase the allowance for doubtful accountsOn June 1, 2015, to write off the bad debt.(c)On December 25, 2015, to record the unexpected collection from BubbaLong.

Stiller Company Uses the Allowance Method to Account for Bad