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Blossom Inc. has an unadjusted debit balance of $3,500 in its Allowance for Doubtful Accounts. The company has experienced bad debt losses of 2% of
Blossom Inc. has an unadjusted debit balance of $3,500 in its Allowance for Doubtful Accounts. The company has experienced bad debt losses of 2% of credit sales in prior periods. Blossom reported net credit sales of $1,500,000 for the current period. The required journal entry to record Bad Debt Expense should include a debit to:
A) Bad Debt Expense for $33,500.
B) Allowance for Doubtful Accounts for $33,500.
C) Bad Debt Expense for $30,000.
D) Allowance for Doubtful Accounts for $30,000.
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