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Cary Inc. reported net credit sales of $350,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $625. The
Cary Inc. reported net credit sales of $350,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $625. The company has experienced bad debt losses of 3% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense? |
a) $2,500
b) $11,125
c) $10,500
d) $1,875
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