As of December 31, 2023, Gill Company reported accounts receivable of $223,000 and an allowance for uncollectible accounts of $8,500. During 2024, accounts receivable increased by $23,600 (that change includes $7,700 of bad debts that were written off). An analysis of Gill Company's December 31, 2024, accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. Bad debt expense for 2024 would be: Multiple Choice $6,598. $7,700. $7,398. None of these answer choices are correct.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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As of December 31, 2023, Gill Company
reported accounts receivable of $223,000
and an allowance for uncollectible
accounts of $8,500. During 2024, accounts
receivable increased by $23,600 (that
change includes $7,700 of bad debts that
were written off). An analysis of Gill
Company's December 31, 2024, accounts
receivable suggests that the allowance for
uncollectible accounts should be 3% of
accounts receivable. Bad debt expense for
2024 would be:
Multiple Choice
$6,598.
$7,700.
$7,398.
None of these answer choices are correct.
Transcribed Image Text:As of December 31, 2023, Gill Company reported accounts receivable of $223,000 and an allowance for uncollectible accounts of $8,500. During 2024, accounts receivable increased by $23,600 (that change includes $7,700 of bad debts that were written off). An analysis of Gill Company's December 31, 2024, accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. Bad debt expense for 2024 would be: Multiple Choice $6,598. $7,700. $7,398. None of these answer choices are correct.
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