ABC Co. had the following data available for 2012 before any adjustments: Accts

Question

ABC Co. had the following data available for 2012 before any adjustments:

Accts Rec., 12/31/15                                    $343,000 Dr

Allowance for Doubtful Accts., 12/31/15                                 3,800 Cr

Net Credit Sales, 12/31/15                           829,000 Cr

Accounts written off during 2015      21,000

ABC expects that it will not be able to collect 8% of the balance in A/R at year-end. What will be the Bad Debt Expense recorded for 2012?

A. 21,000

B. 27,440

C. 23,460

D. 48,440

E. 44,640

Explanation / Answer

Bad debts expense = (343000*8%)-3800= 23640 Option C is correct

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects