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QUESTION
Farr Co. elects to use the percentage-of-sales basis in 2017 to record bad debt expense. It estimates that 4% of net credit sales will become...
Farr Co. elects to use the percentage-of-sales basis in 2017 to record bad debt expense. It estimates that 4% of net credit sales will become uncollectible. Sales revenues are $855,000 for 2017, sales returns and allowances are $43,100, and the allowance for doubtful accounts has a credit balance of $9,500.
