Abbott Company uses the allowance method of accounting for uncollectible receivables. Abbott estimates that 1% 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 $2,800 and made credit sales of $94,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be Oa. $1,540 Ob. $940 Oc. $1,700 d. $4,340

Abbott Company uses the allowance method of accounting for uncollectible receivables. Abbott estimates that 1% 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 $2,800 and made credit sales of $94,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be Oa. $1,540 Ob. $940 Oc. $1,700 d. $4,340

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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I can not figure out the last part of this question.
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