You had total sales of $1,000,000 for 2016, of which $200,000 were cash sales and...
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Accounting
You had total sales of $1,000,000 for 2016, of which $200,000 were cash sales and the rest were on account. Prior year results indicate that 3% of your credit sales will become uncollectible, and therefore become a bad debt. At December 31, 2016, your Allowance for Doubtful Accounts account has a credit balance of $2,400. Using the percentage of sales method to account for bad debts, make the adjusting entry below, needed at December 31, 2016.
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