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Question
Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and bad debt expense is estimated at 3% of credit sales. If credit sales are $300,000, the amount of the adjusting entry for the estimated uncollectible accounts receivable
a. is $8,500
b. is $9,500
c. is $9,000
d. cannot be determined with the information given
Answer
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