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28 For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an allowance for uncollectible
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For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $88,000 and $2,400, respectively, at December 31, 2020. During 2021, Rahal's credit sales and collections were $407,000 and $411,000, respectively, and $2,640 in accounts receivable were written off. Rahal's 2021 bad debt expense is: Multiple Choice None of these answer choices are correct. $4,110. $2,400. $2,640Step by Step Solution
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