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Question - Suppose Fine Chocolates Co. estimates bad debt under the percentage of sales method. Before adjusting entries at year end, the following accounts had these normal balances:
Accounts Receivable: $4,000
Allowance for Uncollectible Accounts: $500
Sales Revenue: $34,000
Management estimates uncollectible accounts to be 1% of sales. What amount is credited to Allowance for Uncollectible Accounts to adjust for bad debt?
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