Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $3,400. During the year, Abbott wrote off accounts receivable totaling $2,100 and made credit sales of $98,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be a.$3,260 b.$1,700 c.$5,360 d.$1,960
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $3,400. During the year, Abbott wrote off accounts receivable totaling $2,100 and made credit sales of $98,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be a.$3,260 b.$1,700 c.$5,360 d.$1,960
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $3,400. During the year, Abbott wrote off
a.$3,260
b.$1,700
c.$5,360
d.$1,960
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