Question
The following information is available for Terry Company: Allowance for doubtful accounts at December 31, 2012 $ 8,000 Credit sales during 2013 $ 400,000 Accounts
The following information is available for Terry Company:
Allowance for doubtful accounts at December 31, 2012 $ 8,000
Credit sales during 2013 $ 400,000
Accounts receivable deemed worthless and written off during 2013 $ 9,000
As a result of a review and aging of accounts receivable in early January 2014, it has been determined that an allowance for doubtful accounts of $7,500 is needed at December 31, 2013.
What amount should Terry record as "bad debt expense" for the year ended December 31, 2013?
A. $ 6,500
B. $ 7,500
C. $ 8,500
D. $ 15,500
E. None of the above
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