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69. Sullivan Inc. has evaluated their process of calculating their estimates of uncollectible accounts receivable. In the past, Sullivan calculated the Bad Debt Expense as

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69. Sullivan Inc. has evaluated their process of calculating their estimates of uncollectible accounts receivable. In the past, Sullivan calculated the Bad Debt Expense as a percentage of sales. They recorded Bad Debt Expense at 1% of Sales. Due to changes in the economic conditions, Sullivan will increase that percentage to 3%. The change is made on January 1, 2025. Sales in 2023 were $1,500,000 and $3,000,000 in 2024 . Sales in 2025 total $4,000,000. What is the Bad Debt Expense Sullivan will record for 2025

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