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Manning Company uses the percentage of receivables method for recording bad debts expense. At the end of the year (before adjustment), the Allowance for Doubtful Accounts has a credit balance of $2,000 and accounts receivables has a balance of $1,000,000. Management estimates that 2% of credit sales will be uncollectible. What is the balance in the Allowance for Doubtful Accounts after adjustment? Select one: a. $24,000 b. $20,000 c. $22,000 d. $23,000 e. None of the above

User Ozguronur
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Answer:

c) $22,000

Step-by-step explanation:

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Manning Company uses the percentage of receivables method for recording bad debts-example-1
User Cerkiner
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