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Libby Company uses the percentage of credit sales method for calculating Bad Debt Expense. The company reported $241,500 in total sales during the year; $195,000
Libby Company uses the percentage of credit sales method for calculating Bad Debt Expense. The company reported $241,500 in total sales during the year; $195,000 of which were on credit. Libby has experienced bad debt losses of 5% of credit sales in prior periods. What is the estimated amount of Bad Debt Expense for the year?
Multiple Choice
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$12,075
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$10,000
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$46,500
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$9,750
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