Terra, Inc. estimates its bad debt expense using an estimate of the accounts that will...
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Accounting
Terra, Inc. estimates its bad debt expense using an estimate of the accounts that will not be collected. Credit sales in the current year were $537,321. Terra estimates $5,000 of accounts will be uncollectible, and the current Allowance for Bad Debts balance is a $1,000 credit. What amount should Terranova book for bad debt expenses?
A$6,000
B$4,000
C$5,000
D$1,000
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