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A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts:

Accounts and Balances
Account Amount Dr/Cr
Accounts receivable 375,000 debit
Allowance for uncollectible accounts 500 debit
Net Sales 800,000 credit

All sales are made on credit. Based on past experience, the company estimates 0.6% of net credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

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