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47. Based on its past collection experience, Ace Company provides for bad
debts
at the rate of 2 percent of net credit sales. On January 1, 2002, the
allowance for doubtful accounts credit balance was $10,000. During 2002,
Ace wrote off $18,000 of uncollectible receivables and recovered $5,000 on
accounts written off in prior years. If net credit sales for 1999 totaled
$1,000,000, the doubtful accounts expense for 2002 should be
a. $1?,000.
b. $20,000.
c. $23,000.
(I. $35,000.

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