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Estimates for doubtful accounts are based on a firm’s prior bad debt experience with due consideration given to changes in credit policy and forecasted general or industry business conditions. ... (.005 X $100,000) 500 Notes Payable (80% X $100,000) 80,000 July 31, 2007 Notes Payable 55,000 Accounts Receivable 55,000 Finance Charge 225 ... ................
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