Question

Using the aging method of accounts receivable method, $5,000 of the companys Accounts Receivable are estimated to be uncollectible. At the end of the year, the balance of Accounts Receivable is $100,000 and the unadjusted credit balance of the Allowance for Doubtful Accounts is $500. Credit sales during the year totaled $150,000. What is the current years Bad Debt Expense?

A) $4,500

B) $5,000

C) $7,000

D) $7,500

Answer

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