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Carlson Inc. uses the percentage of credit sales method to estimate bad debts. Before the year-end adjustment, Carlson's Allowance for Doubtful Accounts has a credit
Carlson Inc. uses the percentage of credit sales method to estimate bad debts. Before the year-end adjustment, Carlson's Allowance for Doubtful Accounts has a credit balance of $4,100. The company had $210,000 of net credit sales during the period, and Carlson has experienced bad debt losses of 6% of credit sales in prior periods. After making the adjusting entry for estimated bad debts, what is the ending balance in the Allowance for Doubtful Accounts? Multiple Choice $8,500. $16,700. $12,600. $8,200
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