Doubtful accounts at the end of the month

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Reference no: EM133434208

Question: A company has the following balances at the end of a month: Accounts Receivable $ 150,000; Allowance for Doubtful Accounts $ 3,000 (debit); credit Sales $ 300,000. The company uses the Percent of Receivable method and experience suggests that 3% of outstanding receivables will not be collectible. What adjustment needs to be made to the Allowance for Doubtful Accounts at the end of the month?

Reference no: EM133434208

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