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:

Question

Luna Moreno

Business

14 February, 06:35

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:

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Answers (1)

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Branden Webster · Answer 1

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