GG Company uses the percentage of sales method for recording bad debts expense. For the...
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GG Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $700,000 and credit sales are $2,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Company make to record the bad debts expense? Select one: a. The answer does not exist O b. Bad Debt Expense Allowance for Doubtful Accounts 32,000 32,000 c. Bad Debt Expense Allowance for Doubtful Accounts 25,000 25,000 O d. Bad Debt Expense Accounts Receivable 32,000 32,000 O e. Bad Debt Expense Accounts Receivable 25,000 25,000
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