Question

The unadjusted trial balance at the end of the year includes the following:


Accounts Receivable $98,000
Allowance for Doubtful Accounts 1,000

Both accounts have normal balances. The company uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the aging analysis equals $5,800. What is the amount of Bad Debt Expense to be recorded for the year?

A) $5,800

B) $4,800

C) $6,800

D) $7,800

Answer

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