Acc280 Financial Accounting: BE9-6 Nieto Co. elects to use the percentage-of-sales basis

Acc280 Financial Accounting

BE9-6
Nieto Co. elects to use the percentage-of-sales basis in 2008 to record bad debts expense. It estimates that 2% of net credit sales will become uncollectible. Sales are $800,000 for 2008, sales returns and allowances are $45,000, and the allowance for doubtful accounts has a credit balance of $9,000.
Prepare the adjusting entry to record bad debts expense in 2008.
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