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Libby Company uses the percentage of credit sales method for calculating Bad Debt Expense. The company reported $229,500 in total sales during the year; $187,000

Libby Company uses the percentage of credit sales method for calculating Bad Debt Expense. The company reported $229,500 in total sales during the year; $187,000 of which were on credit. Libby has experienced bad debt losses of 6% of credit sales in prior periods. What is the estimated amount of Bad Debt Expense for the year?

Multiple Choice

  • $13,770.

  • $42,500.

  • $11,000.

  • $11,220.

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