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As of December 31, 2015, Gill Co. reported accounts receivable of $225,000 and an allowance for uncollectible accounts of $8,900. During 2016, accounts receivable increased

As of December 31, 2015, Gill Co. reported accounts receivable of $225,000 and an allowance for uncollectible accounts of $8,900. During 2016, accounts receivable increased by $22,300, including $7,750 in bad debts that were written off. An analysis of Gill Co.'s December 31, 2016, accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. Bad debt expense for 2016 would be:

rev: 04_20_2016_QC_CS-49054

Multiple Choice

  • $7,419.

  • $6,269.

  • None of these answer choices are correct.

  • $7,750.

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