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lichael Company uses the percent-of-sales method for estimating bad debts expense. The company's bad debt expense is normally 3% of net credit sales which were $320,000 for me year. During the year $500 was written off. If the Allowance for Bad Debts account had a beginning debit balance of $1,100 what is the balance at the end of the year? A. $8,000 B. $9,100 OC $8,500 OD. $9,600

lichael Company uses the percent-of-sales method for estimating bad debts expense. The company's bad debt expense is normally 3% of net credit sales which were $320,000 for me year. During the year $500 was written off. If the Allowance for Bad Debts account had a beginning debit balance of $1,100 what is the balance at the end of the year? A. $8,000 B. $9,100 OC $8,500 OD. $9,600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Michael Company uses the percent-of-sales method for estimating bad debts expense. The company's bad debt expense is normally 3% of net credit sales which were $320,000 for the year. During the year $500 was written off. If the Allowance for Bad Debts account had a beginning debit balance of $1,100 what is the balance at the end of the year? A. $8,000 B. $9,100 OC. $8,500 OD. $9,600 CITD
Transcribed Image Text:Michael Company uses the percent-of-sales method for estimating bad debts expense. The company's bad debt expense is normally 3% of net credit sales which were $320,000 for the year. During the year $500 was written off. If the Allowance for Bad Debts account had a beginning debit balance of $1,100 what is the balance at the end of the year? A. $8,000 B. $9,100 OC. $8,500 OD. $9,600 CITD
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