Question
2. At the end of the year, Swain Company had the following information: Credit sales for the year: $1,000,000 Accounts receivable, beginning of year: $250,000
2. At the end of the year, Swain Company had the following information: Credit sales for the year: $1,000,000 Accounts receivable, beginning of year: $250,000 Allowance for bad debts, beginning of year: $94,000 Accounts receivable, end of year: $120,000 Cash collections during the year: $1,050,000 Swain uses the percentage of sales method of estimating bad debt expense. During this year, bad debt expense was estimated to be 10% of credit sales for the year. Calculate the amount of accounts receivable that were actually written off the books during the year.
| $50,000 | |
| $130,000 | |
| $80,000 | |
| $94,000 | |
| $100,000 |
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