The following information is related to December 31, 2024 balances. Accounts receivable Allowance for doubtful accounts (credit) Cash realizable value $1,400,000 (120,000) 1,280,000 During 2025, sales on account were $390,000 and collections on account were $230,000. The company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year-end indicated that uncollectibles should be estimated at $144,000. Bad debt expense for 2025 is A) $46,000. B) $24,000. C) $2,000. OD) $144,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following information is related to December 31, 2024 balances.
• Accounts receivable
Allowance for doubtful accounts
(credit)
$1,400,000
(120,000)
1,280,000
Cash realizable value
During 2025, sales on account were $390,000 and collections on account were
$230,000. The company wrote off $22,000 in uncollectible accounts. An
analysis of outstanding receivable accounts at year-end indicated that
uncollectibles should be estimated at $144,000. Bad debt expense for 2025 is
A) $46,000.
B) $24,000.
C) $2,000.
OD) $144,000.
Transcribed Image Text:The following information is related to December 31, 2024 balances. • Accounts receivable Allowance for doubtful accounts (credit) $1,400,000 (120,000) 1,280,000 Cash realizable value During 2025, sales on account were $390,000 and collections on account were $230,000. The company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year-end indicated that uncollectibles should be estimated at $144,000. Bad debt expense for 2025 is A) $46,000. B) $24,000. C) $2,000. OD) $144,000.
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