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4. A company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted
4. A company used 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: All sales are made on credit. Based on past experience, the company estimates 0.5% of credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? A. $925 B. $1,225 C. $4,200 D. $4,500 E. $45,000
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