Net Accounts Receivable: Allowance for Doubtful Accounts Video Lessons

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Problem: Empire Dynasty has net credit sales of $900,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $1,000 prior to adjustment, its balance after adjustment will be a credit of a. $18,000. b. $19,000. c. $17,980. d. $17,000.

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Empire Dynasty has net credit sales of $900,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $1,000 prior to adjustment, its balance after adjustment will be a credit of

a. $18,000.

b. $19,000.

c. $17,980.

d. $17,000.

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Our tutors rated the difficulty ofEmpire Dynasty has net credit sales of $900,000 for the year...as medium difficulty.