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The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Accounts Receivable 7,300 Allowance for Uncollectible
The following information pertains to Lightning Inc., at the end of December:
Credit Sales | $ | 20,000 | |
Accounts Payable | 10,000 | ||
Accounts Receivable | 7,300 | ||
Allowance for Uncollectible Accounts | 400 | credit | |
Cash Sales | 20,000 | ||
Lightning 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 40% of receivables greater than 30 days past due. The accounts receivable balance of $7,300 consists of $4,500 not yet due, $1,600 up to 30 days past due, and $1,200 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense?
Multiple Choice
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$208.
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$504.
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$400.
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$603.
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