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Metlock Pet Supply Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $340000 and credit sales are $1360000. Management
Metlock Pet Supply Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $340000 and credit sales are $1360000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Metlock make if the Allowance for Doubtful Accounts has a credit balance of $3400 before adjustment? Bad Debt Expense Accounts Receivable Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense 13600 6800 6800 17000 17000 23800 Allowance for Doubtful Accounts 23800
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