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Your Company had a $4,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During the year,
Your Company had a $4,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During the year, Your Company provided $25,000 of service on account. The company collected $24,000 cash from account receivable. Bad debts are estimated to be 2% of sales on account. How much bad debts expense will be recognize on the income statement
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