Question: Answer please. Computing Bad Debts Under the Allowance Method Based on Sales Solstice Inc. has a credit balance of $600 in its allowance for doubtful

Answer please.

Computing Bad Debts Under the Allowance Method Based on Sales Solstice Inc. has a credit balance of $600 in its allowance for doubtful accounts before the year-end adjustment for bad debts. The amount of credit sales for the year is $80,000, and the year-end balance in accounts receivable is $15,000. Assume that the bad debt estimate is 0.5% of credit sales. What is (1) bad debt expense for the year and (2) the ending balance in the allowance for doubtful accounts

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