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Contine uses the percentage of sales basis to estimate its bad debts. For the year ended December 31, 2014, Gowns' total credit sales are C.
Contine uses the percentage of sales basis to estimate its bad debts. For the year ended December 31, 2014, Gowns' total credit sales are C. 500,000. Management of the company estimates that 15 of credit sales will become uncollectible. The existing balance in the Allowance for Doubtful Account is a debit balance of 61,750. The Accounts Receivable balance at December 31, 2014 is 132,000. The entry to record bad debt expense at December 31, 2014 will impact the statement of financial position by
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