A company uses the aging of receivables method. During the year, the company recorded credit sales...

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A company uses the aging of receivables method. During the year, the company recorded credit sales of $690,000. Before adjusting entries at year-end, the company has accounts receivable of $340,000, of which $56,000 is past due, and the allowance account had a credit balance of $2,700. The company expects it will not collect 8% of the amount not yet past due and 27% of the past due accounts. Which of the following adjusting entries will the company record at year-end? Transaction Account Title Debit Credit A. Bad Debt Expense 37,840 Allowance for Uncollectible Accounts 37,840 B. Bad Debt Expense 40,540 Allowance for Uncollectible Accounts 40,540 C. Bad Debt Expense 35,140 Allowance for Uncollectible Accounts 35,140 D. Allowance for Uncollectible Accounts 35,140 Bad Debt Expense 35,140 A company uses the aging of receivables method. During the year, the company recorded credit sales of $690,000. Before adjusting entries at year-end, the company has accounts receivable of $340,000, of which $56,000 is past due, and the allowance account had a credit balance of $2,700. The company expects it will not collect 8% of the amount not yet past due and 27% of the past due accounts. Which of the following adjusting entries will the company record at year-end? Transaction Account Title Debit Credit A. Bad Debt Expense 37,840 Allowance for Uncollectible Accounts 37,840 B. Bad Debt Expense 40,540 Allowance for Uncollectible Accounts 40,540 C. Bad Debt Expense 35,140 Allowance for Uncollectible Accounts 35,140 D. Allowance for Uncollectible Accounts 35,140 Bad Debt Expense 35,140