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The Allowance for Bad Debts Account Has a Credit Balance

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Essay

The Allowance for Bad Debts account has a credit balance of $2,000 before the adjusting entry for bad debts expense.The company's management estimates that 2% of net credit sales will be uncollectible for the year 2019.Net credit sales for the year were $250,000.Prepare the journal entry to record the bad debts expense on December 31,2019.Omit explanation.


Definitions:

Relative Deprivation

Feeling of discontent or injustice experienced when comparing oneself to others in worse conditions.

Social Movements

Organized collective efforts by people to bring about social change or to resist it.

Collectives

Assemblies or groups of people united by common goals, interests, or identities, working collaboratively to achieve collective objectives.

Defining Features

are the essential attributes or characteristics that establish the identity and nature of something, distinguishing it from others.

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