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21. A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted
21. A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net Sales $ 375,000 debit 500 debit 800,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? a) $1,275 b) $1,775 c) $4,500 d) $4,800 e) $5,500
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