In its first year of business, Volunteer Cakes made $1,000 in credit sales. The company...
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Accounting
In its first year of business, Volunteer Cakes made $1,000 in credit sales. The company records bad debt expense equal to 6% of credit sales. At the end of its first year of business, the companys Balance Sheet reports $400 of accounts receivable and $20 of allowance for doubtful accounts. What is the bad debt expense reported on the income statement?
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