Question: Extreme Sport Inc uses the allowance method to account for
Extreme Sport, Inc., uses the allowance method to account for bad debts. During 2010, the company recorded $750,000 in credit sales. At the end of 2010 before adjustments, account balances were accounts receivable, $190,000, and allowance for uncollectible accounts, $(1,000). If bad debts expense is estimated to be 2% of credit sales, how much bad debts expense will be on the year-end income statement?
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