Question
The December 31 trial balance of Jedi Company included the following accounts: Accounts Receivable $ 10,000 Allowance for Bad Debts 800 (cr.) Sales Revenue 130,000
The December 31 trial balance of Jedi Company included the following accounts:
| Accounts Receivable | $ 10,000 |
| Allowance for Bad Debts | 800 (cr.) |
| Sales Revenue | 130,000 |
| Sales Returns and Allowances | 5,000 |
If it is estimated that 1 percent of the net sales is uncollectible, the entry to record the estimate of bad debts would include a debit to Bad Debt Expense for
| a. | $400 |
| b. | $450 |
| c. | $1,200 |
| d. | $1,250 |
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Fraud examination
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
4th edition
