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Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is...

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Accounting

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Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $330,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 8% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,600 before adjustment? Select the correct answer. $22,800 $22,800 $23,800 $23,800 Bad Debt Expense Accounts Receivable Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts O Bad Debt Expense Accounts Receivable $24,800 $24,800 $23,300 $23,300

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