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Business, 08.09.2021 15:30 ikramhamideh

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $ 365,000 debit
Allowance for uncollectible accounts 600 debit
Net Sales 810,000 credit
All sales are made on credit. Based on past experience, the company estimates that 0.4% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
a. $2,640
b. $2,060
c. $3,840
d. $3,240
e. $860

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