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At December 31, 2016 the accounts receivable balance for Ever-steal Company was $100,000 while the credit balance of allowance for bad debts was $ 4,000.
At December 31, 2016 the accounts receivable balance for Ever-steal Company was $100,000 while the credit balance of allowance for bad debts was $ 4,000. Which of the following correctly records Ever-steal's bad debts expenses, Using percent-of-accounts receivable method and assuming that uncollectible accounts will amount to 10% of accounts receivable. Select one: Dr. Bad debt expenses 10,000 Cr. Allowance for bad debts 10,000 Dr. Bad debt expenses 10,000 Cr. Accounts receivable 10,000 Dr. Allowance for bad debts 6,000 Cr. Accounts Receivable 6,000 Dr. Bad debt expenses 6,000 Cr. Allowance for bad debts 6,000 6,000 Dr. Bad debt expenses Cr. Accounts receivable 6,000
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