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At September 30 of the current year, a company reported the following: Total sales for the current year: $870,000, includes $165,000 in cash sales. Accounts
At September 30 of the current year, a company reported the following: Total sales for the current year: $870,000, includes $165,000 in cash sales. Accounts receivable balance at Dec. 31, current year: $270,000. Bad debts written off during the current year: $1,300. Balance of Allowance for Doubtful Accounts at January 1, current year: $3,800. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal: (a) 1.85% of credit sales. (b) 5.75% of accounts receivable
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