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A company uses the percentage of net sales method for estimating bad debt expense at 4%. If the company sold $500,000 worth of merchandise for

A company uses the percentage of net sales method for estimating bad debt expense at 4%. If the company sold $500,000 worth of merchandise for the year and had $15,000 in receivables at year end and a balance in its allowance for doubtful accounts of $2,000 record the journal entry for the bad debt expense for the year.

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