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Consider the following information regarding the company's history: Accounts Receivables total$950,000 Estimates show that 4% of its receivables will be uncollectible No balance in the
Consider the following information regarding the company's history:
- Accounts Receivables total$950,000
- Estimates show that 4% of its receivables will be uncollectible
- No balance in the Allowance account
Using the allowance method, what is the correct amount of a company's bad debt expense for the year, given the above information?
- $42,750
- $39,520
- $36,480
- $38,000
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