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The Allowance for Bad Debts account has a credit balance of $4,000 before the adjusting entry for bad debts expense. The company's management estimates that
The Allowance for Bad Debts account has a credit balance of $4,000 before the adjusting entry for bad debts expense. The company's management estimates that 4% of net credit sales will be uncollectible for the year 2017. Net credit sales for the year amounted to $250,000. What will be the balance of Allowance for Bad Debts on the December 31, 2017 balance sheet?
Group of answer choices
$10,000
$9,840
$14,000
$4,000
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