Problem #5 of 13 1 2 Liberty Corporation has credit sales of $2,000,000 for the...
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Problem #5 of 13 1 2 Liberty Corporation has credit sales of $2,000,000 for the year and estimates at the end of the year that 1.5% of the credit sales will default. The allowance for doubtful accounts at the end of the year before the adjusting entry is made is a credit balance of $10,000. If Liberty uses the percentage of credit sales method, what is the estimate of the bad debt expense for the period? a. $20,000 
a. $70,000
Problem #5 of 13 1 2 Liberty Corporation has credit sales of $2,000,000 for the year and estimates at the end of the year that 1.5% of the credit sales will default. The allowance for doubtful accounts at the end of the year before the adjusting entry is made is a credit balance of $10,000. If Liberty uses the percentage of credit sales method, what is the estimate of the bad debt expense for the period? a. $20,000
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