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Ruben Company has the following information at year-end before adjusting for bad debt. Assume amounts are at their normal balance. Credit Sales: $300,000 Accounts Receivable:

Ruben Company has the following information at year-end before adjusting for bad debt. Assume amounts are at their normal balance.

Credit Sales: $300,000

Accounts Receivable: $48,000

Allowance for Doubtful Accounts - beginning balance: $1,000

The company uses the aging of receivables method to report bad debt. Per the aging schedule, $3,000 is the total estimated uncollectible.

Given this information, what is the journal entry to record bad debt expense?

Dr. Bad Debt Expense 3,000; Cr. Accounts Receivable 3,000

Dr. Bad Debt Expense 2,000; Cr. Allowance for Doubtful Accounts 2,000

Dr. Bad Debt Expense 1,000; Cr. Allowance for Doubtful Accounts 1,000

Dr. Bad Debt Expense 3,000; Cr. Allowance for Doubtful Accounts 3,000

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