A company had credit sales of $500,000 during the third quarter of 2013. It had to write-off $300 of accounts as uncollectible during the quarter, and had no recoveries. Its balance in Allowance for Doubtful Accounts was $2,000 at the beginning of the quarter. Based on historical experience and trends in the economy, the company expects that 1% of its credit sales will ultimately be uncollectible in the future. How much Bad Debt Expense should the company report for the third quarter of 2013? $5,000 $300 $7,000 $2,000

A company had credit sales of $500,000 during the third quarter of 2013. It had to write-off $300 of accounts as uncollectible during the quarter, and had no recoveries. Its balance in Allowance for Doubtful Accounts was $2,000 at the beginning of the quarter. Based on historical experience and trends in the economy, the company expects that 1% of its credit sales will ultimately be uncollectible in the future. How much Bad Debt Expense should the company report for the third quarter of 2013? $5,000 $300 $7,000 $2,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 6MC: Doer Company reports year-end credit sales in the amount of $390,000 and accounts receivable of...

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View Policies Current Attempt in Progress Vaughn Manufacturing has outstanding accounts receivable totaling $ 6.47 million as of December 31 and sales on credit during the year of $ 24.5 million. There is also a credit balance of $ 11500 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? O $388200. O $ 399700. O $ 376700. O $1470000. Save for Later Attempts: 0 of 1 used Submit Answer
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