Question
Following are the account balances from the December 31 trial balance of Lark Company: Accounts Receivable $ 60,000 Allowance for Bad Debts 2,400 (dr) Sales
Following are the account balances from the December 31 trial balance of Lark Company:
| Accounts Receivable | $ 60,000 |
|
| Allowance for Bad Debts | 2,400 | (dr) |
| Sales Revenue | 405,000 |
|
| Sales Returns and Allowances | 15,000 |
|
If 10 percent of the Accounts Receivable is estimated to be uncollectible, the entry to record the estimate of bad debts would include a debit to Bad Debt Expense for:
| a. $6,000 b. $3,600 c. $8,400 d. $6,240 |
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Authors: Cru Military, American Association Of Christian Counselors, Light University, Karen D Watkins
1st Edition
0986363081, 978-0986363085
