Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is...
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Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $400,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 10% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment?
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