Kelton Inc. reported net credit sales of $450,000 for the current year. The unadjusted credit...
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Kelton Inc. reported net credit sales of $450,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $750. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense?
$3,750
$4,500
$4,470
$4,800
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