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Compute Bad Debt Expense Based on the Following Information

Question 200

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Compute bad debt expense based on the following information:
(a) RLF Company estimates that 10% of accounts receivable will become uncollectible. Accounts receivable are $100,000, at the end of the year, and the allowance for doubtful accounts has a $600 credit balance.
(b) RLF Company estimates that 10% of accounts receivable will become uncollectible. Accounts receivable are $100,000 at the end of the year, and the allowance for doubtful accounts has a $500 debit balance.

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(a) Bad debt expense = $9400 [...

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