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Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $155,000 Credit sales, $455,000 Selling and administrative expenses, $115,000
Flyer Company has provided the following information prior to any year-end bad debt adjustment: | |
Cash sales, $155,000 | |
Credit sales, $455,000 | |
Selling and administrative expenses, $115,000 | |
Sales returns and allowances, $35,000 | |
Gross profit, $495,000 | |
Accounts receivable, $155,000 | |
Sales discounts, $19,000 | |
Allowance for doubtful accounts credit balance, $1,700 | |
Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?
$10,500 $7,400 $9,100 $10,800 |
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