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The data below is for Music Corporation for 2016. Accounts receivable—January 1, 2016      $236,000 Credit sales during 2016                               820,000 Collections from credit customers during 2016          590,000 Customer accounts written off as uncollectible during 2016        8,000 Allowance for doubtful accounts—January 1, 2016        8,700 Estimated uncollectible accounts based on an aging analysis    9,600 Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2016? a. $8,000b. $8,100 c. $8,700 d. $8,900

The data below is for Music Corporation for 2016. Accounts receivable—January 1, 2016      $236,000 Credit sales during 2016                               820,000 Collections from credit customers during 2016          590,000 Customer accounts written off as uncollectible during 2016        8,000 Allowance for doubtful accounts—January 1, 2016        8,700 Estimated uncollectible accounts based on an aging analysis    9,600 Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2016? a. $8,000b. $8,100 c. $8,700 d. $8,900

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 65E: Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared...
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The data below is for Music Corporation for 2016.

Accounts receivable—January 1, 2016      $236,000

Credit sales during 2016                               820,000

Collections from credit customers during 2016          590,000

Customer accounts written off as uncollectible during 2016        8,000

Allowance for doubtful accounts—January 1, 2016        8,700

Estimated uncollectible accounts based on an aging analysis    9,600

Refer to the data for Music Corporation.

If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2016?

a. $8,000b. $8,100 c. $8,700 d. $8,900

The data below is for Music Corporation for 2016. Accounts receivable-January 1, 2016 Credit sales during 2016 Collections from credit customers during 2016 Customer accounts written off as uncollectible during 2016 Allowance for doubtful accounts-January 1, 2016 Estimated uncollectible accounts based on an aging analysis $236,000 820,000 590,000 8,000 8,700 9,600 10. Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2016? a. $8,000 b. $8,100 c. $8,700 d. $8,900
Transcribed Image Text:The data below is for Music Corporation for 2016. Accounts receivable-January 1, 2016 Credit sales during 2016 Collections from credit customers during 2016 Customer accounts written off as uncollectible during 2016 Allowance for doubtful accounts-January 1, 2016 Estimated uncollectible accounts based on an aging analysis $236,000 820,000 590,000 8,000 8,700 9,600 10. Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2016? a. $8,000 b. $8,100 c. $8,700 d. $8,900
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