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6. As of December 31, Mesa Company has a balance of $5,000 in accounts receivable of which $500 is more than 30 days overdue. Mesa

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6. As of December 31, Mesa Company has a balance of $5,000 in accounts receivable of which $500 is more than 30 days overdue. Mesa has a credit balance of $45 in the allowance for doubtful accounts. Mesa estimates its bad debts losses at 1% of current accounts and 10% ofaccounts over thirty days. What adjustment should Mesa make to the allowance for doubtful accounts. ADA a. $95 (credit) b. $55 (credit) $50 (credit) None of the above d

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