Answer:
<em><u>The answer is</u></em>: <u>$ 6,615.</u>
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Explanation:
If bad accounts are estimated at 0.7% of sales, and sales amount to $ 945,000, what you need to do is multiply $ 945,000 by 0.007 which is the result of dividing 0.7 by 100.
The amount of the entry for adjustment of expenses for bad debts would be: $ 945,000 x 0.007 = $ 6,615.
<em><u>The answer is</u></em>: <u>$ 6,615.</u>