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Question
Vine Company began operations on January 1, 2013. During its first year, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows:
| a. | Sold $1,348,300 of merchandise (that had cost $983,600) on credit, terms n/30. |
| b. | Wrote off $19,400 of uncollectible accounts receivable. |
| c. | Received $666,100 cash in payment of accounts receivable. |
| d. | In adjusting the accounts on December 31, the company estimated that 2.90% of accounts receivable will be uncollectible. |
What is the amount required for the adjusting journal entry to record bad debt expense?
A. $18,644.90
B. $38,621.20
C. $19,783.80
D. $19,221.20
E. $19,400.20
Answer
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Related questions
Q:
Periods
12 Percent 1
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