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for 2024, Rahal's Auto Parts estimates bad debt expense at 2% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts
for 2024, Rahal's Auto Parts estimates bad debt expense at 2% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $91,500 and $3,100, respectively, at December 31, 2023. During 2024, Rahal's credit sales and collections were $414,000 and $418,000, respectively, and $3,840 in accounts receivable were written off.
Rahal's final balance in its allowance for uncollectible accounts at December 31, 2024, is:
Multiple Choice
$6,840.
$5,100.
$7,540.
$8,280.
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