Rising Sun Enterprises, LLC uses the percentage of credit sales method for estimating bad debt....
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Rising Sun Enterprises, LLC uses the percentage of credit sales method for estimating bad debt. This year Rising Sun had total sales of $175,000 of which $78,500 were credit sales. At the beginning of the year, the Accounts Receivable account had a debit balance of $10,000 and the Allowance of Doubtful Accounts showed a credit balance of $600. Collections of A/R during 2016 amounted to $68,000. Based on past collections Rising Sun estimates that 1.5% of credit sales will be uncollectible. What is the amount of the adjustment to record this estimate?
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