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During Burns Company's first year of operations, credit sales totaled $ 1 6 4 , 0 0 0 and collections on credit sales totaled $

During Burns Company's first year of operations, credit sales totaled $164,000 and collections on credit sales totaled $117,000. Burns estimates that bad debt losses will be 1.5% of credit sales. By year-end, Burns had written off $420 of specific accounts as uncollectible.
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