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3 May, 18:07

Bad debts expense is estimated by the percent-of-sales method. The management estimates that 3% of net credit sales will be uncollectible. Calculate the amount of bad debts expense for 2015 and prepare the Journal Entry.

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  1. 3 May, 20:48
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    Total Sales = 75,000

    Bad debt = 75,000*3% = 2250

    Entry: Debit Credit

    Bad debt expense 2250

    Allowance for Doubtful debt 2250
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