Question: The trial balance before adjustment of Reba Mc Intrye Inc. shows the following balances.
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Dr.
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Cr.
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Accounts Receivable
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$90,000
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Allowance for Doubtful Accounts
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1,750
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Sales (all on credit)
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$680,000
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Instructions
Make the entry for estimated bad debts suppose that the allowance is to provide for doubtful accounts on the basis of (1st) 4 percent gross accounts receivable and (2nd) 1 percent of net sales.