Question
Lorena Company has the following balances: Net Credit Sales $1,800,000; Accounts receivable $640,000; and Allowance for Doubtful Accounts $2,000. Uncollectible accounts are estimated to be
Lorena Company has the following balances: Net Credit Sales $1,800,000; Accounts receivable $640,000; and Allowance for Doubtful Accounts $2,000. Uncollectible accounts are estimated to be 3% of the receivables balance. What is estimated bad debt expense for this company? A. $17,200
B. $19,200
C. $21,200
D. $54,000
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Principles of Accounting
Authors: Needles, Powers, crosson
11th Edition
1439037744, 978-1133626985, 978-1439037744
