(Recording Bad Debts) Sandel Company reports the following financial information before adjustments.
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Dr.
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Cr.
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Accounts Receivable
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$160,000
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Allowance for Doubtful Accounts
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$2,000
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Sales Revenue (all on credit)
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800,000
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Sales Returns and Allowances
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50,000
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Instructions
Prepare the journal entry to record bad debt expense assuming Sandel Company estimates bad debts at (a) 1% of net sales and (b) 5% of accounts receivable.