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A company estimates their bad debt expense using the Aging Analysis. The balance in their AFDA account is $2.000 debit. Total Accounts Receivable for the
A company estimates their bad debt expense using the Aging Analysis. The balance in their AFDA account is $2.000 debit. Total Accounts Receivable for the last year is $600,000. How much should they debit Bad Debt Expense for if: 50% of their Accounts Receivables is not due yet, but they expect 1% of it to become uncollectible, 30% of the A/R is over 30 days overdue and they expect 5% to be uncollectible, and the balance is over 60 days overdue and they expect 10% to be uncollectible?* a) $22,000 b) $23,000 c) $24,000 d) $26,000
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