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The Allowance for Bad Debts account has a debit balance of $10,000 before the adjusting entry for bad debts expense. After analyzing the accounts in
The Allowance for Bad Debts account has a debit balance of $10,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method, the company's management estimates that uncollectible accounts will be $11,000. What amount of bad debts expense will be reported on the income statement? OA. $11,000 O B. $21,000 O c. $1,000 O D. $4,000
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