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Question - The allowance for doubtful debts account had a balance of $2200 before bad debts of $1400 were written off and the allowance was adjusted to 10% of the accounts receivable balance of $20 000. Compute the New amount of allowance for doubtful debts that is deducted from accounts receivable in the balance sheet?
a. $1200.
b. $1400.
c. $2000.
d. $2200.
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