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Charley Corp. has outstanding accounts receivable totaling $2.54 million as of December 31 and sales on credit during the year of $12.9 million. There is
Charley Corp. has outstanding accounts receivable totaling $2.54 million as of
December 31 and sales on credit during the year of $12.9 million. There is also a credit
balance of $5,000 in the allowance for doubtful accounts. If the company estimates that
1% of its net credit sales 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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