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A company has $90,000 in outstanding accounts receivable, and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding

A company has $90,000 in outstanding accounts receivable, and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $800 debit. Make the journal entry to set up the allowance account.

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