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Tamarisk, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 4% of accounts receivable will become uncollectible. Accounts receivable are $240,000
Tamarisk, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 4% of accounts receivable will become uncollectible. Accounts receivable are $240,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,400.
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