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Net credit sales for the year are $800,000 and bad debts are expected to be 2% of net credit sales. The company uses the
Net credit sales for the year are $800,000 and bad debts are expected to be 2% of net credit sales. The company uses the percentage of sales approach. If Allowance for Doubtful Accounts has credit balance of $19,000 before any bad debt adjustment for the year, what is the credit balance in the Allowance for Doubtful Accounts after the bad debt adjustment? Answer: 16000
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Financial Accounting
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
3rd edition
9780077506902, 78025540, 77506901, 978-0078025549
