Adjusting entry for doubtful accounts

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On January 1, 2008 Murphy Printing Company's allowance for doubtful accounts had a credit balance of $6,000. Sales revenue for 2008 was $1,000,000 of which 80% was on credit. Historical data indicates that 3 percent of gross credit sales prove uncollectible. (As such 3% of gross credit sales is their accounting policy) What should the balance in the allowance account be after the adjusting entry for doubtful accounts is made?

Reference no: EM13150571

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