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Question - Net sales for the month are $800,000 and bad debts are expected to be 1.5% of net sales. The company uses the percentage of sales approach. If Allowance for Doubtful Accounts has a credit balance of $15,000 before adjustment, what is the balance in the allowance account after the adjustment?
a. $27,000
b. $12,000
c. $15,000
d. $23,000
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