As of January 1, 2023, Ella Co, had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on experience, 2% of Elton's Accounts Receivable has been uncollectible. During 2023, Ella wrote off $650,000 of accounts receivable. Account Receivable for 2023 were $18,000,000. In its December 31, 2023, balance sheet, what amount should Ella report as a doubtful debts expense? $490,000 $360,000 $130,000 d. $880,000
As of January 1, 2023, Ella Co, had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on experience, 2% of Elton's Accounts Receivable has been uncollectible. During 2023, Ella wrote off $650,000 of accounts receivable. Account Receivable for 2023 were $18,000,000. In its December 31, 2023, balance sheet, what amount should Ella report as a doubtful debts expense? $490,000 $360,000 $130,000 d. $880,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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H1.
Transcribed Image Text:As of January 1, 2023, Ella Co, had a credit balance of $520,000 in its allowance for
uncollectible accounts.
Based on experience, 2% of Elton's Accounts Receivable has been
uncollectible. During 2023, Ella wrote off $650,000 of accounts receivable. Account Receivable for 2023 were
$18,000,000. In its December 31, 2023, balance sheet, what amount should Ella
report as a doubtful debts expense?
$490,000
$360,000
$130,000
d. $880,000
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