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The Allowance for Bad Debts Account Has a Credit Balance

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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 2017.Net credit sales for the year were $250,000.Prepare the journal entry to record the bad debts expense on December 31,2017.


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