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Wasco Company has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $105,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $750. Net credit sales during the year were $160,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year

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Answer:

$8,000

Explanation:

Calculation for the estimated Bad Debt Expense for the year

Using this formula

Estimated Bad Debt Expense = Net credit sales × Bad debt losses

Let plug in the formula

Estimated Bad Debt Expense= $160,000 × 0.05 Estimated Bad Debt Expense= $8,000

Therefore the estimated Bad Debt Expense for the year will be $8,000

Answer:

I have no idea if that’s a statement or a question sry.

Explanation:

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