The Lubrano Corp. uses the income statement approach to estimating bad debt expense. In Year...
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The Lubrano Corp. uses the income statement approach to estimating bad debt expense. In Year 13, sales on credit amounted to $2,000,000. Sales returns and allowances were $200,000. Lubrano Corp. estimates that 2% of net credit sales will be uncollectible. The allowance for doubtful accounts had a balance at the beginning of Year 13 of $25,000. How much should Lubrano Corp. charge to bad debt expense in Year 13?
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