The following information pertains to Lightning Inc., at the end of December: Credit Sales $20,000 10,000 13,900 Accounts Payable Accounts Receivable Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 17% of receivables up to 30 days past due, and 45% of receivables greater than 30 days past due. The accounts receivable balance of $13,900 consists of $9,500 not yet due, $2,400 up to 30 days past due, and $2,000 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense?

The following information pertains to Lightning Inc., at the end of December: Credit Sales $20,000 10,000 13,900 Accounts Payable Accounts Receivable Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 17% of receivables up to 30 days past due, and 45% of receivables greater than 30 days past due. The accounts receivable balance of $13,900 consists of $9,500 not yet due, $2,400 up to 30 days past due, and $2,000 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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