Question
Accounts receivable for the Clyborn Company totaled $41,000 and the Allowance for Uncollectible Accounts balance was positive $570 at year end after write offs (i.e.,
Accounts receivable for the Clyborn Company totaled $41,000 and the Allowance for Uncollectible Accounts balance was positive $570 at year end after write offs (i.e., the bad debt expense had been over estimated in the prior period) but before recording the year-end estimate of uncollectible accounts. The company wrote off $490 of uncollectible accounts during the year. Management estimated that 3% of its net credit sales of $55,000 would not be collected. Compute the bad debt expense for the year using the percentage-of-credit-sales method.
Select one:
A. $1,080
B. $ 80
C. $ 490
D. $1,650
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