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As of December 31, 2018, Amy Jo's Appliances had unadjusted account balances in accounts receivable of $302,000 and $1,010 in the allowance for uncollectible accounts,
As of December 31, 2018, Amy Jo's Appliances had unadjusted account balances in accounts receivable of $302,000 and $1,010 in the allowance for uncollectible accounts, following 2018 write-offs of $6,360 in bad debts. An analysis of Amy Jo's December 31, 2018, accounts receivable suggests that the allowance for uncollectible accounts should be 4% of accounts receivable.
Bad debt expense for 2018 should be:
$6,360.
$12,080.
$11,070.
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