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Edsel Inc., has the following information available for 2005 from the unadjusted trial balance at year end.

Cash sales $400,000
Credit sales 600,000
Ending accounts receivable balance 180,000
Ending allowance for uncollectibles 1,500
Estimated uncollectibles 2%

If Edsel uses the sales revenue approach for estimating bad debt expense, the income statement should show an expense of??

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9448634

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