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Kelton Inc. reported net credit sales of $450,000 for the current year. The unadjusted credit...

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Accounting

Kelton Inc. reported net credit sales of $450,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $750. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense?

$3,750

$4,500

$4,470

$4,800

Answer & Explanation Solved by verified expert
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