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View Policies Current Attempt in Progress Bonita Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $595000

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Bonita Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $595000 and credit sales are $2620000. Management estimates that 3% of accounts receivable will be uncollectible. What adjusting entry will Bonita Company make to record bad debt expense if the Allowance for Doubtful Accounts has a $4900 credit balance before adjustment?

a) Bad Debt Expense 17850

Allowance for Doubtful 17850

Accounts

b)

Bad Debt Expense 12950
Allowance for Doubtful 12950

Accounts

c)Bad Debt Expense 17850 Accounts Receivable 17850

d)

Bad Debt Expense 12950
Accounts Receivable 12950

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