Emma's Clothes, Inc. has accounts receivable of $210,000. In the current economy, she has noticed an increase in uncollectible accounts. In 2022, her sales were $3,510,000 and in 2023, sales were $3,810,000. Before 2023, she estimated that 3% of sales would eventually be uncollectible. In 2023, Emma believes that her losses were closer to 4% in 2022. What should be the bad debt expense for 2022 and 2023 in the comparative income statements for 2022 and 2023? A. 2022, $140,400; 2023, $292,800 OB. 2022, $140,400; 2023, $152,400 OC. 2022, $105,300; 2023, $152,400 OD. 2022, $105,300; 2023, $292,800

CONCEPTS IN FED.TAX.,2020-W/ACCESS
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ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
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Emma's Clothes, Inc. has accounts receivable of $210,000. In the current economy, she has noticed an increase in uncollectible accounts. In 2022, her sales were $3,510,000 and in 2023, sales were $3,810,000. Before 2023, she estimated that 3% of sales would eventually be uncollectible. In 2023, Emma believes that her losses were closer to 4% in 2022. What should be the bad debt
expense for 2022 and 2023 in the comparative income statements for 2022 and 2023?
A. 2022, $140,400; 2023, $292,800
OB. 2022, $140,400; 2023, $152,400
OC. 2022, $105,300; 2023, $152,400
OD. 2022, $105,300; 2023, $292,800
Transcribed Image Text:Emma's Clothes, Inc. has accounts receivable of $210,000. In the current economy, she has noticed an increase in uncollectible accounts. In 2022, her sales were $3,510,000 and in 2023, sales were $3,810,000. Before 2023, she estimated that 3% of sales would eventually be uncollectible. In 2023, Emma believes that her losses were closer to 4% in 2022. What should be the bad debt expense for 2022 and 2023 in the comparative income statements for 2022 and 2023? A. 2022, $140,400; 2023, $292,800 OB. 2022, $140,400; 2023, $152,400 OC. 2022, $105,300; 2023, $152,400 OD. 2022, $105,300; 2023, $292,800
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