Alex Co. elects to use the percentage of credit sales method in 2009 to record...
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Accounting
Alex Co. elects to use the percentage of credit sales method in 2009 to record bad debts and concludes that 2% of its credit sales will become uncollectible. Sales are $700,000 for 2009, of which $200,000 are cash. The Allowance for Bad Debt had a credit balance of $12,000 at December 31, 2009 (before adjustment). What is the ending balance in the Allowance for Bad Debt after adjustment?
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