Question
Darnit Corp. estimates bad debt expense at 4% of credit sales. During 2003, the company wrote off $4,000 in uncollectible accounts. The company has the
Darnit Corp. estimates bad debt expense at 4% of credit sales. During 2003, the company wrote off $4,000 in uncollectible accounts. The company has the following balances at year-end prior to recording bad debt expense:
Credit Sales $160,000
Accounts Receivable 30,000
Allowance 100
What is Darnits Bad Debt Expense for the year 2003?
$6,300
$5,200
$10,400
$6,400
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The Internal Auditors Guide To Risk Assessment
Authors: Rick A. Wright Jr.
2nd Edition
1634540158, 9781634540155
