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bekas [8.4K]
3 years ago
5

Jack Company provides for bad debts expense at the rate of 2% of credit sales. The following data are available for 2013:

Business
1 answer:
Aliun [14]3 years ago
3 0

Answer:

$27,000

Explanation:

To calculate the balance for the Allowance for Doubtful Accounts account, we first have to calculate the total estimated bad debts for the year = $1,500,000 x 2% = $30,000.

Then we need to add the bad debt that was written off during the year ($9,000) and subtract the balance for the same account at the beginning of the year ($12,000).

= $30,000 + $9,000 - $12,000 = $27,000

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