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Skysong, Inc. uses the percentage of receivables method for recording bad debts expense. The accounts...

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Accounting

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Skysong, Inc. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $140000 and credit sales are $1410000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Skysong, Inc. make if the Allowance for Doubtful Accounts has a credit balance of $2800 before adjustment? 4200 4200 Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Accounts Receivable Bad Debt Expense Accounts Receivable 7000 Bad Debt pense Allowance for Doubtful Account 7000

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