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Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible.
Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct? Select one: Oa. Uncollectible accounts are estimated to be $55,500. b. Uncollectible accounts are estimated to be $111,000. c. Bad debt expense is estimated to be $5,550. d. Bad debt expense is estimated to be $11,100.
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