Gamma Corporation had a balance in its Allowance for Doubtful Accounts of $30,000 at January 1, 2020 for Accounts Receivable of $600,000. During the year, Gamma wrote off $21,600 of accounts receivable and collected $6,300 on accounts previously written off. The balance in Accounts Receivable at December 31, 2020, was $720,000. At year-end, Gamma estimate that 5% of Accounts Receivable will be uncollectible. What is the amount of bad debt expense Gamma Corporation will recognize for 2020? O $6,000 $9,300 O $21,300

Gamma Corporation had a balance in its Allowance for Doubtful Accounts of $30,000 at January 1, 2020 for Accounts Receivable of $600,000. During the year, Gamma wrote off $21,600 of accounts receivable and collected $6,300 on accounts previously written off. The balance in Accounts Receivable at December 31, 2020, was $720,000. At year-end, Gamma estimate that 5% of Accounts Receivable will be uncollectible. What is the amount of bad debt expense Gamma Corporation will recognize for 2020? O $6,000 $9,300 O $21,300

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
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