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On December 31, 2019 accounts receivable shows a normal balance of $75,000. Allowance for Doubtful Accounts has a debit balance of $2,500. Credit sales for
On December 31, 2019 accounts receivable shows a normal balance of $75,000. Allowance for Doubtful Accounts has a debit balance of $2,500. Credit sales for the year were $500,000. An aging of accounts receivable shows that $3,500 in estimated uncollectible accounts. The company uses the aging of receivables method to recognize bad debt expense. Determine Bad Debt Expense.
$1,000 | ||
$2,500 | ||
$3,500 | ||
$6,000 |
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