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Company A estimated its bad debt expense at 2% of accounts receivable in 2020. However, in 2021, they determine that the estimate should be 2.5%.
Company A estimated its bad debt expense at 2% of accounts receivable in 2020. However, in 2021, they determine that the estimate should be 2.5%. In 2020, accounts receivable was 100,000. In 2021, accounts receivable was 120,000. What amount of bad debt expense would the company record in 2021? Group of answer choices
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