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1. On December 31, Dunner's Coffee Company reports the following results for its calendar year. Credit sales $ 5,000 Accounts Receivable.. $100,000 debit Allowance for doubtful accounts$ 100 credit balance a. Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be 2% of credit sales. b. Prepare the adjusting journal entry to record bad debts expense assuming uncollectibles are estimated to be 5% of year-end accounts receivable.
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