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how do you deal with that kind of question? 17. ABC Company gathered the following information pertaining to the year ended on December 31, 2016
how do you deal with that kind of question?
17. ABC Company gathered the following information pertaining to the year ended on December 31, 2016 prior to any adjustments: Net sales for the year Accounts receivables on 31 December 2016 Allowance for Doubtful accounts on 31 December 2016 780,000 165,000 3,200 (Cr.) Age, amount and percentage uncollectible of the Accounts Receivables at 31 December 2016: 1-30 days 92,000 3% 31-60 days 36,000 5% 61-90 days 23,000 8% Over 90 days 14,000 20% Total 165,000 Assume ABC Company uses the aging-of-accounts-receivable method to estimate bad debts. The adjusting entry to record bad debt expenses for the year 2016 is: A) Bad debt expense 12,400 Accounts receivable 12,400 B) Bad debt expense 6,000 Allowance for doubtful accounts 6,000 C) Bad debt expense 9,200 3 9,200 Allowance for doubtful accounts D) Bad debt expense 9,200 Accounts receivable 9,200Step by Step Solution
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