Matthew_McCoy_E7-7

Matthew_McCoy_E7-7 - Bad Debt Expense 6,000 Allowance for...

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Matthew McCoy E7-7 a) 1% of net sales = ($800,000 - $50,000) x .01 = $7,500 Bad Debt Expense 7,500           Allowance for Doubtful Accounts 7,500 b) 5% of accounts receivable = ($160,000 x .05) - $2,000 = $6,000
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