A company has $97,000 in outstanding accounts receivable and it uses the allowance method to...
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Accounting
A company has $97,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $870 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:
Multiple Choice
$3,010
$3,845
$3,915
$3,880
$4,750
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