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On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $50,000 and $1,350, respectively. During 2016, Coolwear wrote off $625 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $4,700 at December 31, 2016. Bad debt expense for 2016 would be:
$6,675.
$3,475.
$625.
$3,975.
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