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11 September, 10:08

At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $300,000 and in Allowance for Uncollectible Accounts of $660 (credit) before any adjustments. 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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  1. 11 September, 10:10
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    300,000 * 2% = 15,000

    15,000 + 660 = 15,660

    The correct answer is $15,660
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