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Using the following information: 12/31/15 Accounts receivable $525,000 Allowance (40,000) Cash realizable value $485,000 During 2016, sales on account were $145,000 and collection on account
- Using the following information: 12/31/15
Accounts receivable $525,000
Allowance (40,000)
Cash realizable value $485,000
During 2016, sales on account were $145,000 and collection on account were $100,000, Also during 2016, the company wrote off $5,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $45,000.
Bad debt expense for 2016 is:
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