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Business, 24.04.2020 16:54 bluenblonderw

Edsel Inc. has the following unadjusted year end trial balance information available for 2018:

Credit sales $600,000
Ending accounts receivable balance $180,000
Ending allowance for uncollectibles $1,500
Estimated uncollectibles 2 %

If Edsel uses the gross accounts receivable approach for estimating the bad debt provision, the income statement will show an expense of:

a. $8,500
b. $5,100
c. $3,600
d. $2,100

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Answers: 1

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Edsel Inc. has the following unadjusted year end trial balance information available for 2018:
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