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As of December 31, 2023, Gill Company reported accounts receivable of $220,000 and an allowance for uncollectible accounts of $9,000. During 2024, accounts receivable increased
As of December 31, 2023, Gill Company reported accounts receivable of $220,000 and an allowance for uncollectible accounts of $9,000. During 2024, accounts receivable increased by $23,000 (that change includes $7,250 of bad debts that were written off). An analysis of Gill Company's December 31, 2024, accounts receivable suggests that the allowance for uncollectible accounts should be 4% of accounts receivable. Bad debt expense for 2024 would be:
Multiple Choice
$7,970.
$7,250.
$9,720.
None of these answer choices are correct.
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