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The business allows approved customers to buy items on credit, payable within 30 days. History shows that about 1.5% of her credit sales never get
The business allows approved customers to buy items on credit, payable within 30 days. History shows that about 1.5% of her credit sales never get collected. The business earned $50,000 in credit sales this year and her current expected receivables are $4,000 before considering potential bad debts. What is the realistic amount of receivables if we use her historical average of 1.5% of credit sales to estimate bad debts? Question 9 options: $4,750 $3,250 $47,250 $750
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