Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,200. During the year, Abbott wrote off accounts receivable totaling $2,300 and made credit sales of $96,000. After the adjusting entry, the December 31 balance in Bad Debt Expense will be Oa. $5,120 Ob, $1,920 Oc. $3,200 Od. $2,820

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,200. During the year, Abbott wrote off accounts receivable totaling $2,300 and made credit sales of $96,000. After the adjusting entry, the December 31 balance in Bad Debt Expense will be Oa. $5,120 Ob, $1,920 Oc. $3,200 Od. $2,820

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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