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A firm has accounts receivable of $228,000 and an existing positive balance of $1,800 in the Allowance for Uncollectible Accounts (.e. the bad debt expense
A firm has accounts receivable of $228,000 and an existing positive balance of $1,800 in the Allowance for Uncollectible Accounts (.e. the bad debt expense had been over estimated in the prior period). One half of the accounts receivable are current and one half is past due. The firm estimates that 2 percent of the current accounts and 5 percent of the past due accounts will prove to be uncollectible. Compute the bad debt expense for the current period using the aging method. Select one: a. $4,850 O b. $9,000 0 C. $3,600 0 d. $6,180
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