Wildhorse Co. uses the percentage of receivables method for recording bad debts expense. The accounts...
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Accounting
Wildhorse Co. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $260000 and credit sales are $2610000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Wildhorse Co. make if the Allowance for Doubtful Accounts has a credit balance of $2600 before adjustment?
A.Bad Debt Expense 7800
Accounts Receivable 7800
B.Bad Debt Expense 7800
Allowance for Doubtful Accounts 7800
C.Bad Debt Expense 26100
Allowance for Doubtful Accounts 26100
D.Bad Debt Expense 26100
Accounts Receivable 26100
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