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Your Company earned $320,000 of revenue on account and $100,000 of cash sales during the year. It collected $250,000 of its receivables during the year.

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Your Company earned $320,000 of revenue on account and $100,000 of cash sales during the year. It collected $250,000 of its receivables during the year. There was no beginning balance in the accounts receivable and allowance accounts. The company estimates that it will be unable to collect 2% of its sales on account. What is bad debt expense for the year

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