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 accoun 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. $6.480 c. $6,000 d. $6.200
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 accoun 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. $6.480 c. $6,000 d. $6.200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On December 31, 2019, Hanks Company's Accounts Receivable balance was $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. $6,480
- ○ c. $6,000
- ○ d. $6,200
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