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Extreme sport INC uses the allowance method to account for bad debts. During 2010, the company recorded $560,000 in credit sales. At the end of 2010 before adjustments, account balances were accounts receivable $180,000, and allowance for uncollectible accounts, ($900). If bad debt expense is estamiated to be 3% of credit sales, how much bad debts expense will be on that year-end income statement?
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