Swifty Corp. has outstanding accounts receivable totaling $5.85 million as of Dec 31st and sales on credit during the year of $32.2 million. There is also a debit balance of $13k in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the balance in the allowance in for doubtful accounts after the year-end adjustments to record bad debt expense? $468k. $481k. $455k. $2,576,000.

Swifty Corp. has outstanding accounts receivable totaling $5.85 million as of Dec 31st and sales on credit during the year of $32.2 million. There is also a debit balance of $13k in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the balance in the allowance in for doubtful accounts after the year-end adjustments to record bad debt expense? $468k. $481k. $455k. $2,576,000.

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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