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JR Corporation has a debit balance of $2,500 in Allowance for Bad Debts. If it estimates that 2 percent of the net sales of $1,000,000
JR Corporation has a debit balance of $2,500 in Allowance for Bad Debts. If it estimates that 2 percent of the net sales of $1,000,000 will be uncollectible, it should
| a. | Debit Allowance for Bad Debts for $20,000 |
| b. | Debit Allowance for Bad Debts for $22,500 |
| c. | Debit Bad Debt Expense for $22,500 |
| d. | Debit Bad Debt Expense for $20,000 |
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