Question
The following information is available for Murphy Company: Allowance for doubtful accounts at December 31, 2013 $16,000 Credit sales during 2014 800,000 Accounts receivable deemed
The following information is available for Murphy Company:
| Allowance for doubtful accounts at December 31, 2013 | $16,000 | |
| Credit sales during 2014 | 800,000 | |
| Accounts receivable deemed worthless and written off during 2014 | 18,000 |
As a result of a review and aging of accounts receivable in early January 2015, it has been determined that an allowance for doubtful accounts of $11,000 is needed at December 31, 2014. What amount should Murphy record as "bad debt expense" for the year ended December 31, 2014?
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Accounting For Managers Financial Accounting
Authors: Morusu Sivasankar
1st Edition
6200624909, 978-6200624901
