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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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