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The Allowance for Bad Debts account has a credit balance of $ 5 , 0 0 0 before the adjusting entry for bad debts expense

The Allowance for Bad Debts account has a credit balance of $5,000 before the adjusting entry for bad debts expense . The company's management estimates that 3% of net credit for the year 2025. Net credit sales for the year amounted to $270,000 What will be the balance of Allowance for Bad Debts on the December 31,2025 sheet?

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