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Sheffield Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $614000 and credit sales are $2670000. Management

Sheffield Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $614000 and credit sales are $2670000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Sheffield Company make to record bad debt expense if the Allowance for Doubtful Accounts has a $4900 credit balance before adjustment?

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