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Valli Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $70,000 and credit sales are $530,000.

Valli Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $70,000 and credit sales are $530,000. Management estimates that 8% is the sales percentage to use. Calculate the required adjustment to record bad debt expense for the year

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