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    Financial Accounting Information for Decisions Study Set 2
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    Exam 7: Reporting and Analyzing Receivables
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    A Company Using the Percentage of Sales Method for Estimating
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A Company Using the Percentage of Sales Method for Estimating

Question 74

Question 74

True/False

A company using the percentage of sales method for estimating bad debts has sales of $350,000 and estimates that 1.0% of its sales are uncollectible. The estimated amount of bad debts expense is $3,500.
$350,000 * 0.01 = $3,500

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