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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The data below is for Music Corporation for 2016.
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
a. $8,000b. $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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