Question
The following information pertains to Lemons accounts receivable and allowance for doubtful accounts balances in 2019 and 2020: 2020 2019 Accounts Receivable $ 320,000 $
The following information pertains to Lemons accounts receivable and allowance for doubtful accounts balances in 2019 and 2020:
|
| 2020 | 2019 |
| Accounts Receivable | $ 320,000 | $ 300,000 |
| Allowance for Doubtful Accounts | ? | 24,750 |
The break-down of the aging periods consists of 50% in the current period, 30% in 31+ days, 15% in 61+ days, and 5% in 91+ days. Lemon allocates 1%, 5%, 25%, and 50% as uncollectable percentage for each aging period respectively. On December 31st, 2020, the Allowance for Doubtful Accounts has a debit ending balance of $6,600 before the adjusting entries are recorded.
What is the bad debt expense for 2020?
Multiple Choice
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$ 6,600
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$19,800
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$26,400
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$31,350
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$33,000
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
