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A company has $97,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 3% of outstanding
A company has $97,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 3% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $870 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: |
$2,910
$3,780
$870
None of these
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