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Moto Cross Company uses the Percentage of Credit Sales Revenue Method to estimate bad debts expense. In Year 6, the company had $900,000 in cash

  1. Moto Cross Company uses the Percentage of Credit Sales Revenue Method to estimate bad debts expense. In Year 6, the company had $900,000 in cash sales revenue and $2,100,000 of credit sales revenue. It estimates Bad Debt Expense as 8% of credit sales revenue. Please show the necessary adjusting journal entry at year-end, December 31, Year 6.

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