A company uses the percent of sales method to determine its bad debts expense. At...
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Accounting
A company uses the percent of sales method to determine its bad debts expense. At the end of the current you the company's unadjusted trial balance reported the following selected amounts Accounts receivable Allowance for uncollectible accounts Net Sales $394, 000 debit 590 credit 990,000 credit All sales are made on credit. Based on past experience, the company estimates that 06% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? Multiple Choice $2,478 $5.940 $1,788 8 of 24
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