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Craigmont uses the allocation method to account for uncollectible accounts. His unadjusted trial balance at the end of the year shows accounts receivable of $106,500,

Craigmont uses the allocation method to account for uncollectible accounts. His unadjusted trial balance at the end of the year shows accounts receivable of $106,500, allowance for doubtful accounts of $685 (credit), and sales of $935,000. If bad debts are estimated to be 5% of accounts receivable, 

what is the amount of the bad debt expense adjustment entry?


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