Question
The following information pertains to ABC, at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Accounts Receivable 10,800 Allowance for Uncollectible Accounts
The following information pertains to ABC, at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Accounts Receivable 10,800 Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 ABC uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 13% of receivables up to 30 days past due, and 47% of receivables greater than 30 days past due. The accounts receivable balance of $10,800 consists of $6,500 not yet due, $2,900 up to 30 days past due, and $1,400 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense? Multiple Choice $377. $1,090. $400. $1,271.
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