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Milo Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $100,000, and management estimates 4% will be uncollectible. Milo company's balance of Allowance for Doubtful Accounts after adjustments, was $7,000. The following year, Milo company wrote off $2,000 of old receivables as uncollectible. What is the balance in the Allowance account now?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92753400

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