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A company uses a gross method for recording cash discounts and the income statement method...

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Accounting

A company uses a gross method for recording cash discounts and the income statement method for assessing bad debt expense. Sales revenue for credit sales during the period was $300. Sales discounts of $20 were also recorded when collecting customer accounts. The allowance for doubtful accounts has a credit balance of $10 at the beginning of the period and the ending balance of the accounts receivable account for the period was $200.
Determine bad debt expense for the period if the company uses a 10% estimate.

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