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Accounting Skills Assessment Practice Exam Page 1 of 11

20. The general ledger account for Accounts Receivable shows a debit balance of $50,000. The Allowance for Doubtful Accounts has a credit balance of $1,000. If management estimates that 5% of Accounts Receivable will prove uncollectible, Bad Debts Expense would be recorded for $1,500. $2,540. $2,500. $3,500.