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Lynch Company reports the following information for its most recent fiscal year, before adjustments: Sales $821,500 Beginning Accounts Receivable Balance $72,500 Sales Returns and Allowances
Lynch Company reports the following information for its most recent fiscal year, before adjustments:
Sales | $821,500 |
Beginning Accounts Receivable Balance | $72,500 |
Sales Returns and Allowances | $12,200 |
Ending Accounts Receivable Balance | $68,845 |
Allowance for Doubtful Accounts | $4,100 (debit balance) |
An accounts receivable aging schedule results in $7,100 of estimated bad debts. If Lynch uses the percentage-of-receivables basis to estimate bad debts, how much is the bad debt expense?
Group of answer choices
$7,100
$11,200
$8,200
$3,000
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