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Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $136,500, allowance for doubtful accounts of
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $136,500, allowance for doubtful accounts of $985 (credit) and sales of $1,085,000. If uncollectible accounts are estimated to be 0.6% of sales, what is the amount of the bad debts expense adjusting entry? Multiple Choice $6,50 $6,510 $5,525 $7,495 $6,635 $6,710
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