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Entity G uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $250,000. Management estimates that 4% of accounts

Entity G uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $250,000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Entity G make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment?

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