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Boheme's accountant is advised that Rhapsody, a trade receivable (debtor) for 2,300 is bankrupt and no payment is likely. Rhapsody is included in Receivables above.

Boheme's accountant is advised that Rhapsody, a trade receivable (debtor) for 2,300 is bankrupt and no payment is likely. Rhapsody is included in Receivables above. It is usual for businesses such as Boheme to experience bad debts of approximately 2%. How should this information affect the accounting statements?

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