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CT Has Been Using the "Expense as Incurred" Approach in Recording

Question 188

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CT has been using the "expense as incurred" approach in recording ordinary repairs. For 2013, CT decided to use the allocation approach on an annual basis. Estimated expenditures for ordinary repairs for the year 2013 were $6,000. Actual cash expenditures for ordinary repairs for January 2013 were $550. Give the indicated journal entries for January 2013.

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