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A company calculates allowance as 5% of the receivables balance using the percentage-of-receivables basis for future's default receivables. If the accounts receivable balance is $160,000,
A company calculates allowance as 5% of the receivables balance using the percentage-of-receivables basis for future's default receivables. If the accounts receivable balance is $160,000, what is the amount for adjustment? A) $7,000 B) $5,000 c) $17,000 D) $31,000 E) $8,000
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