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Business, 08.04.2021 22:20 aesthetickait
Flash Co. uses the allowance method based on percent of sales method to account for bad debts. At the end of 2010, Flash Co.'s unadjusted trial balance shows an accounts receivable balance of $45,000; allowance for doubtful accounts balance of $400 (debit); and sales of $1,500,000. Based on history, Flash estimates that bad debts will be 0.5% of sales. The entry to record estimated bad debts will include an debit to Bad Debts Expense in the amount of: Multiple choice question. $7,100 $7,500 $7,900 $795,000 $750,000
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Flash Co. uses the allowance method based on percent of sales method to account for bad debts. At th...
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