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Compute bad debt expense based on the following information: (a) RLF Company estimates that 2% of net credit sales will become uncollectible. Sales revenue are
Compute bad debt expense based on the following information:
(a) RLF Company estimates that 2% of net credit sales will become uncollectible. Sales revenue are $600,000, sales returns and allowances are $30,000, and the allowance for doubtful accounts has a $6,000 credit balance.
(b) RLF Company estimates that 10% of accounts receivable (aging method) will become uncollectible. Accounts receivable are $100,000 at the end of the year, and the allowance for doubtful accounts has a $500 debit balance. \
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