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Valli Company uses the percentage of sales method for recording bad debts expense. For the year cash sales are $700,000 and credit sales are $2,500,000.

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Valli Company uses the percentage of sales method for recording bad debts expense. For the year cash sales are $700,000 and credit sales are $2,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Valli Company make to record the bad debts expense

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