At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $309,000 and $600 (credit) in Allowance for Uncollectible Accounts. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. Bad debt expense for the year should be:

Respuesta :

Answer:

Bad debt expense for the year should be: $14.850

Explanation:

Balance    

Accounts Receivable $ 309.000  

Allowance for Uncollectible Accounts   $ 600

Suggestion

Allowance for Uncollectible Accounts   5%

Allowance for Uncollectible Accounts   $15.450  

Complement

Bad debt expense  $ 14.850  

Allowance for Uncollectible Accounts   $ 14.850