What is the bad debts expense for the year

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Question - A company has an opening debit balance of $500 in Allowance for Doubtful Accounts. Its sales for the year is $500,000 and it estimates that 1% of sales is uncollectible. What is the Bad Debts Expense for the year?

a. $5500

b. $5000

c. $6000

d. $4500

Reference no: EM133018658

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