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Skysong, Inc. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $240000 and credit sales are $960000. Management estimates that

Skysong, Inc. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $240000 and credit sales are $960000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Skysong, Inc. make if the Allowance for Doubtful Accounts has a credit balance of $2400 before adjustment?

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