Question: McKinney Co estimates its uncollectible accounts as a percentage
McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney & Co. made credit sales of $1,500,000 in Year 1. McKinney & Co. estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney & Co. at the end of Year 1.
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