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Accounting

Question 19
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Lowe's Company uses the allowance method for recording its expected credit losses. It estimates bad debts at 2% of credit sales, which were $990,000 during the year. On December 31, the Accounts Receivable balance was $165,000, and the Allowance for Doubtful Accounts had a credit balance of $13,420 before adjustments.
What is the amount of Bad Debt Expense Lowe's Company will report on their Income Statement this year?
Select one:
a. $3,300
b. $19,800
c. $19,532
d. $3,032
e. $13,420
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