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Assume the following unadjusted account balances at the end of the accounting period for James Avery Company: Accounts Receivable, $ 1 0 8 , 0

Assume the following unadjusted account balances at the end of the accounting period for James Avery Company: Accounts Receivable, $108,000; Allowances for Doubtful Accounts, $2,880(debit balance); Credit sales, $864,000.
If James Avery Company's past experience indicates credit losses of 2% of credit sales, the adjusting entry to estimate uncollectible accounts is:
Select one:
a.
\table[[,Debit,Credit],[Bad Debt Expense,14,400,],[Allowance for Doubtful Accounts,,14,400]]
b.
\table[[,Debit,Credit],[Bad Debt Expense,18,360,],[Allowance for Doubtful Accounts,,18,360]]
c.
\table[[,Debit,Credit],[Bad Debt Expense,17,280,],[Allowance for Doubtful Accounts,,17,280]]
d.
\table[[,Debit,Credit],[Bad Debt Expense,17,280,],[Accounts Receivable,,17,280]]
e.
\table[[,Debit,Credit],[Allowance for Doubtful Accounts,17,280,],[Bad Debt Expense,,17,280]]
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