MC Qu. 95 A company uses the percent of sales method... A company uses the...
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Accounting
MC Qu. 95 A company uses the percent of sales method... A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for doubtful accounts Net Sales $375,000 debit 500 debit 800,000 credit I sales are made on credit. Based on past experience the company estimates that 06% of credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? O $4,800 $1,275 O $5,500 O $1,775 O $4,500
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