Question
The Answer is C. $5250 but how come $6450 is not included??? As of December 31, 2016, Amy Jo's Appliances had unadjusted account balances in
The Answer is C. $5250 but how come $6450 is not included???
As of December 31, 2016, Amy Jo's Appliances had unadjusted account balances in accounts receivable of $311,000 and $970 in the allowance for uncollectible accounts, following 2016 write-offs of $6,450 in bad debts. An analysis of Amy Jo's December 31, 2016, accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for 2016 should be:
A. | $6,220. |
B. | $6,450. |
C. | $5,250. |
D. | None of these answer choices are correct. |
A/R 12/31/2016 | $311,000 |
| x 2% |
Uncollectible | $ 6,220 |
Allowance | (970) |
Expense | $ 5,250 |
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