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At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $370,000 and in Allowance for Uncollectible Accounts of $1,170 (debit) before adjustment.
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $370,000 and in Allowance for Uncollectible Accounts of $1,170 (debit) before adjustment. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 4% of accounts receivable. Bad debt expense for the year should be: Multiple Choice $17,871. $1,170. $15,970. $13,630.
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