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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 Receivable | $ | 363,000 | debit |
Net Sales | 808,000 | credit | |
All sales are made on credit. Based on past experience, the company estimates that 0.6% of net sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
Multiple Choice
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$4,268
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$2,758
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$1,598
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$5,428
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$4,848
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