On December 31, 2019, Hanks Company's Accounts Receivable balance was of $300,000, and an analysis of their accounts receivable suggests that the Allowance for Doubtful Accounts should be 2% of accounts receivable. The balance in the Allowance for Doubtful Accounts on January 1, 2019 was $5,970. During the year 2019, the company wrote off $6,450 of bad debts. What amount should be reported as bad debt expense for the year 2019? Select one: a. $5,520 b. $6,200 C. $6,480 d. $6,000

On December 31, 2019, Hanks Company's Accounts Receivable balance was of $300,000, and an analysis of their accounts receivable suggests that the Allowance for Doubtful Accounts should be 2% of accounts receivable. The balance in the Allowance for Doubtful Accounts on January 1, 2019 was $5,970. During the year 2019, the company wrote off $6,450 of bad debts. What amount should be reported as bad debt expense for the year 2019? Select one: a. $5,520 b. $6,200 C. $6,480 d. $6,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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