Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $120,500 and sales of $1,005,000. If uncollectible accounts are estimated to be 0.8% of sales, what is the amount of the bad debts expense adjusting entry? Multiple Choice O $8,040 $8,165 $8,240 $8,865 O $7,215

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 6EB: Olena Mirrors records bad debt using the allowance, balance sheet method. They recorded $343,160 in...
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Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of
$120,500 and sales of $1,005,000. If uncollectible accounts are estimated to be 0.8% of sales, what is the amount of the bad debts expense
adjusting entry?
Multiple Choice
O
$8,040
$8,165
$8,240
$8,865
O
$7,215
Transcribed Image Text:Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $120,500 and sales of $1,005,000. If uncollectible accounts are estimated to be 0.8% of sales, what is the amount of the bad debts expense adjusting entry? Multiple Choice O $8,040 $8,165 $8,240 $8,865 O $7,215
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