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Assume a company uses the allowance method to estimate uncollectible accounts and has the following information for 2020, prior to any adjusting entries: Net Credit

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Assume a company uses the allowance method to estimate uncollectible accounts and has the following information for 2020, prior to any adjusting entries: Net Credit Sales: $200,000 Accounts Receivable: $17,000 Allowance for Uncollectible Accounts: $950 Assume the company uses the percent of sales method and estimates it will be unable to collect 1% of net credit sales. The adjusting entry to estimate uncollectible accounts at year-end includes a Credit to Accounts Receivable of $2,000 Debit to Uncollectible Account Expense of $1,050 Credit to Accounts Receivable of $1,050 O Debit to Uncollectible Account Expense of $2,000 Debit to Allowance for Uncollectible Accounts of $2,000

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