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The following information is for WATCHOUT2 Company: $ Accounts Receivable, January 1st Allowance for Doubtful Accounts, January 1st Credit Sales during the year Credit Sales
The following information is for WATCHOUT2 Company: $ Accounts Receivable, January 1st Allowance for Doubtful Accounts, January 1st Credit Sales during the year Credit Sales Returns during the year Accounts written off during the year 75,000 8,000 600,000 25,000 3,000 WATCHOUT2 uses the percentage of receivables method of estimating uncollectible accounts. Based on past history, WATCHOUT2 believes 3% is a good estimate. Based on only this information, what is the ending balance of Allowance for Doubtful Accounts prior to the adjusting entry for uncollectible accounts
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