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At year-end, Chief Company has a balance of $15,000 in accounts receivable of which $1,500 is more than 30 days overdue. Chief has a credit
At year-end, Chief Company has a balance of $15,000 in accounts receivable of which $1,500 is more than 30 days overdue. Chief has a credit balance of $150 in the allowance for doubtful accounts before any year-end adjustments. Using the aging of accounts receivable method, Chief estimates that 2.0% of current accounts and 10% of accounts over thirty days are uncollectible. What is the amount of bad debt expense?
Multiple Choice
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$570.
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$150.
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$270.
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$420.
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