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28. Grim Grinders began the year with a $2,500 credit balance in its allowances for doubtful accounts. During the year it accrued $12,000 of bad
28. Grim Grinders began the year with a $2,500 credit balance in its allowances for doubtful accounts. During the year it accrued $12,000 of bad debt expense and wrote off accounts totaling $18,000. At year-end, a percentage of the outstanding accounts receivable indicated that a $5,500 allowance should be provided for on that date. The year-end adjustment for bad debt expense should be
a. | $9,000 |
b. | $4,500 |
c. | $5,000 |
d. | $6,000 |
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