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Zero Co. uses the allowance method of accounting for bad debts. Their Allowance for Doubtful Accounts has a year-end credit balance, prior to adjustment, of

Zero Co. uses the allowance method of accounting for bad debts. Their Allowance for Doubtful Accounts has a year-end credit balance, prior to adjustment, of $650. The bad debts are estimated at 3% of $560,000, the net credit sales. Prepare the year end adjusting journal entry for bad debt expense.

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