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Kelton Inc. reported net credit sales of $370,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $675. The
Kelton Inc. reported net credit sales of $370,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $675. The company has experienced bad debt losses of 2% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense?
Multiple Choice
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$2,700
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$8,075
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$2,025
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$7,400
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