Question
Kelton Incorporated reported net credit sales of $498,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $830. The
Kelton Incorporated reported net credit sales of $498,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $830. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as the estimated Bad Debt Expense?
Multiple Choice
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$2,490
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$5,810
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$4,980
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$3,320
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Financial Accounting And Reporting
Authors: Barry Elliott, Jamie Elliott
3rd Edition
0139488944, 978-0139488948
