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Bolivia Corp. has outstanding accounts receivable totaling $2.46 million as of December 31 and sales on credit during the year of $8.2 million. There is
Bolivia Corp. has outstanding accounts receivable totaling $2.46 million as of December 31 and sales on credit during the year of $8.2 million. There is also a debit balance of $14,000 in the allowance for doubtful accounts. If the company estimates that 3% of its accounts receivable will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year- end adjustment to record bad debt expense?
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