WholeMart uses the balance sheet approach to account for bad debts. During 2020, the company provided $30,000 of services on account. By the end of
WholeMart uses the balance sheet approach to account for bad debts. During 2020, the company provided $30,000 of services on account. By the end of 2020, cash collections on accounts receivable was $23,900. WholeMart estimated that 9% of the accounts receivable balance at 12/31/2020 would prove to be uncollectible. What was the amount of the companys bad debt expense for 2020?
A. $549
B. $2,151
C. $2,700
D. $610
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Authors: Libby, Short
6th Edition
978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881
