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A company has $317,000 in credit sales. The company uses the allowance method to account for uncollectible accounts, and the Allowance for Doubtful Accounts now
A company has $317,000 in credit sales. The company uses the allowance method to account for uncollectible accounts, and the Allowance for Doubtful Accounts now has an $8,150 debit balance. If the company estimates 6% of credit sales will be uncollectible, what is the amount of the journal entry for the estimated uncollectible accounts? I thought this was 1.6%(317000)=19020 -8150=10870 ... but I missed the question. Thank you.
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