26-27

Goods in transit which are shipped f.o.b. destination should be included in the inventory of the buyer. included in the inventory of the shipping company. included in the inventory of the seller. none of these. Holtzman Corporation had a 1/1/07 balance in the Allowance for Doubtful Accounts of $10,000. During 2007, it wrote off $7, 200 of accounts and collected $2, 100 on accounts previously written off. The balance in Accounts Receivable was $200,000 at 1/1 and $240,000 at 12/31. At 12/31/07, Holtzman estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2007? $7, 100. $9, 200. $12,000. $2,000