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Question 2 Not yet answered Marked out of 1.00 Flag question The Allowance for Bad...

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Question 2 Not yet answered Marked out of 1.00 Flag question The Allowance for Bad Debts account has a credit balance of $8,700 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method, the company's management estimates that uncollectible accounts will be $15,000. What will be the balance of the Allowance for Bad Debts reported on the balance sheet? Select one: OA. $6,300 OB. $23,700 OC. $13,500 OD. $15,000 Question 3 Not yet answered Marked out of 1.00 Flag question A newly created design business, Rhodes Art, is finishing its first year of operations. During the year, credit sales were $45,000 and collections of credit sales were $33,000. One account for $675 was written off. Smart Art uses the aging-of-receivables method to account for bad debts expense. It has estimated $200 as uncollectible at year-end. What is the amount of the Bad Debts Expense for the first year of operations? Select one: OA. $200 OB. $11,125 OC. $675 OD. $875

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