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Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $151,000 Credit sales, $451,000 Selling and administrative expenses, $111,000
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $151,000 Credit sales, $451,000 Selling and administrative expenses, $111,000 Sales returns and allowances, $31,000 Gross profit, $491,000 Accounts receivable, $120,000 Sales discounts, $15,000 Allowance for doubtful accounts credit balance, $1,300 Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. How much is Flyers bad debt expense?
Multiple Choice $10,320. $9,020. $10,740. $7,720.
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