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Finish Co. uses the allowance method to account for bad debts. At the end of 2010, Finish Co.'s unadjusted trial balance shows an accounts receivable balance of $30,000; allowance for doubtful accounts balance of $200 (credit); and sales of $600,000. Based on history, Finish estimates that bad debts will be 1% of sales. The entry to record estimated bad debts will include a debit to Bad Debts Expense in the amount of:

User MAP
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1 Answer

4 votes

Answer:

$6000

Step-by-step explanation:

Because you have to debit the Back Debts account. and 1% of 600,000 is 6000.

600,000 is the amount of sales.

User Justinkmunger
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