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LMNOP Company's aging schedule of its accounts receivable is provided below: days outstanding $ outstanding probability of default 0-40 days $1,200,000 1.5% 41-70 days $800,000

LMNOP Company's aging schedule of its accounts receivable is provided below:

days outstanding

$ outstanding

probability of default

0-40 days

$1,200,000

1.5%

41-70 days

$800,000

5%

71-100 days

$100,000

10%

LMNOP accounts for bad debts using the allowance method. During the year, LMNOP wrote off $10,000 for accounts deemed uncollectible. If LMNOP's beginning balance in allowance for bad debts is $8,000, how much bad debt expense should LMNOP recognize for the fiscal year?

Select one:

a. $582,000

b. $68,000

c. $70,000

d. $60,000

e. $10,000

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