Question
December 31, our company had a balance of $378,000 in its accounts receivable and an unused balance of $2,340 in its allowance for uncollectible
December 31, our company had a balance of $378,000 in its accounts receivable and an unused balance of $2,340 in its allowance for uncollectible accounts. The company then analyzed the ages of its accounts as follows: Age of A/R Current Amount Bad debt estimation % Estimate $311,400 1% $3,114 1-60 days past due 43,200 5% $2,160 61-180 days past due 15,300 15% $2,295 Over 180 days past due Total 8,100 40% $3,240 $378,000 $10,809 The company continues to base its allowance for uncollectible accounts on this aging analysis and percentages. What amount of bad debts expense does the company report on its income statement for the year? Select one: a. $6,129 b. $378,000 c. $8,469 d. $10,809 e. $151,200
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