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Question - The Accounts receivable balance for D & L Inc. at December 31, 2020, was $18,000. During 2020, D & L had the following transactions:
Sales revenue on account, $547,000 (ignore cost of goods sold).
Collections on account, $450,000.
Write-offs of uncollectible, $6,900.
Uncollectible account expense, 3% of credit sales.
Required - D & L uses the percentage of Sales Method to account for its' uncollectible, journalize the entry to record bad debts.
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