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Intermediate Accounting I 6. On 1/1/20, AR Company had a credit balance of $10,000 in its allowance for doubtful accounts (ADA). During 2020 $9,000 was
Intermediate Accounting I
6. On 1/1/20, AR Company had a credit balance of $10,000 in its allowance for doubtful accounts (ADA). During 2020 $9,000 was written off and $1,000 of written off accounts were recovered. An aging analysis prepared as of 12/31/20 indicates that accounts receivable of $13,700 will probably never be collected. How much will AR Company record as bad debt expense on 12/31/20?
a) $12,000
b) $13,700
c) $11,700
d) $10,000
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