Question
At December 31, 20x1, Dreamworld Company reported accounts receivable and allowance for uncollectible accounts of $488,000 and $1,630 respectively. Dreamworld made credit sales to customers
At December 31, 20x1, Dreamworld Company reported accounts receivable and allowance for uncollectible accounts of $488,000 and $1,630 respectively. Dreamworld made credit sales to customers and received collections from customers in the amount of $331,000 and $305,000, respectively, during 20x2. During 20x2, Dreamworld wrote off $1,850 in accounts receivable. If Dreamworld estimates bad debt expense at 0.20% of credit sales, what is the amount of bad debt expense Dreamworld Company would report for 20x2? Multiple Choice $592. $662. $737. $807.
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