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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 prepares an aging of accounts receivable and the result shows that 4% of accounts receivable Is estimated to be uncollectible. How much Is bad debt expense? $6,100 $3,500 $3,448 $4,800
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