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The Accounts Receivable balance for Computer Co. is $70,000 as of December 31st. Before calculating and recording Bad Debt Expense for the year, the Allowance for Doubtful Accounts has a credit balance of $80.
Problem 1: Assume Computer Co. uses the analysis of receivables method. What is "Bad Debt Expense" on its Income Statement for the year ending December 31st?
Option 1: $2,000
Option 2: $1,920
Option 3: $1,950
Option 4: $2,030
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