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Star Enterprises Uses the Aging of Accounts Receivable Method What Is the Estimate of Bad Debt Expense?
A)$10,000
B)$18,000

question 101

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Star Enterprises uses the aging of accounts receivable method.The following information comes from its accounting records:  Cash sales $100,000 Credit sales 1,600,000 Total sales 2,000,000 Credit balance in the Allowance for Doubtful Accounts 10,000 Estimated uncollectible accounts receivables 38,000\begin{array}{lr}\text { Cash sales } & \$ 100,000 \\\text { Credit sales } & 1,600,000 \\\text { Total sales } & 2,000,000 \\\text { Credit balance in the Allowance for Doubtful Accounts } & 10,000 \\\text { Estimated uncollectible accounts receivables } & 38,000\end{array} What is the estimate of bad debt expense?

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