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Question - Kingston Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $420,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $1,500.
Your answer is partially correct. Try again. Prepare the adjusting journal entry to record bad debt expense for the year.
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