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Question - The Atlas Tile Company has an accounts receivable balance at December 31 of $376,000. Its allowance for uncollectible accounts, before adjustment, has a balance of $37,000. Credit sales for Atlas, for the year just ended, were $2,700,000. Using its credit history, Atlas decides to increase its allowance account by 3% of credit sales. Calculate the allowance for uncollectible accounts as a percentage of the accounts receivable ratio, both before and after the 3% adjustment was made.
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