Brown company uses the following categories and, Ask an Expert

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Brown Company uses the following categories and probabilities to age its receivables:

Age	Balance	Probability of Default
1-120 days	$70,000	2%
Over 120 days	30,000	6%

(a) Determine estimated bad debts.

(b) Prepare the necessary entry. Assume that the allowance account has a credit balance of $2,600.

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Category:- Basic Finance
Reference No.:- M91875350

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