Question: Carpet Emporium ended its first year with 300 000 of accounts
Carpet Emporium ended its first year with $300,000 of accounts receivable and estimates that 2% of that amount will never be paid. No account has been specifically identified as non-paying at the date of the year-end balance sheet. What will the income statement for the year show as the bad debts expense if Carpet Emporium uses the allowance method of accounting for bad debts?
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