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On December 31, Bears, Inc. estimates that it will pay its employees a 4% bonus on net income after deducting the bonus. Bears reports net

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On December 31, Bears, Inc. estimates that it will pay its employees a 4% bonus on net income after deducting the bonus. Bears reports net income of $295,000 before the calculation of the bonus. The bonus will be paid on Jan. 31 of next year. Determine the amount of the bonus and journalize the liability for the bonus as of December 31. (Round the journal entry to the nearest dollar)

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