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Question - Dragonstar Industries had credit sales for the period of $85,000. The balance in Allowance for Doubtful Accounts is a debit of $827. How much will the credit be to Allowance for Doubtful Accounts if Dragonstar uses the percent of credit sales method of estimating uncollectible accounts and they estimate that 2% of credit sales will be uncollectible?
a) $1,700
b) $873
c) $2,527
d) $827
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