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Fred Co. had credit sales for the year of $10 million. The company's current balance in the Allowance for Doubtful Accounts is $150,000. If Fred

Fred Co. had credit sales for the year of $10 million. The company's current balance in the Allowance for Doubtful Accounts is $150,000. If Fred uses the percent of sales method for determining its year-end allowance and estimates bad debts as being 2% of credit sales, what is the amount of the year-end journal entry to record Bad Debts Expense?

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