Ending balance in allowance for doubtful accounts

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Reference no: EM131291910

Jacob’s Hiking Store had $700,000 in credit sales in the first year of business. If Jacob estimates 20% of the sales will be uncollectible, what is the bad debt expense in the first year? What is the ending balance in the allowance for doubtful accounts (assuming zero balance at the beginning of the year)?

a. Bad debt expense

b. Ending Balance in allowance for doubtful accounts

Reference no: EM131291910

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