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X Company has the following accounting balances at the end of the year before adjustments: Accounts receivable Allowance for
Multiple Choice Bad debts expense will be $2,000 on the income statement and Allowance for uncollectible accounts will be $(3
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Answer #1

Answer : Option D,

Bad debts expense will be $1,000 on income statement and allowances for uncollectible accounts will be $2,000 on balance sheet.

That implies,

$50,000 × 2% = $1,000

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