The following information is from the 2025 records of Albert Book Shop: Accounts receivable, December 31, 2025 $43,000 (debit) Allowance for Bad Debts, December 31, 2025 prior to adjustment 2,000 (debit) Net credit sales for 2025 177,000 Accounts written off as uncollectible during 2025 15,000 Cash sales during 2025 29,500 Bad debts expense is estimated by the aging−of−receivables method. Management estimates that $5,100 of accounts receivable will be uncollectible. Calculate the amount of bad debts expense for 2025. A. $3,100 B. $5,350 C. $7,100 D. $9,400
The following information is from the 2025 records of Albert Book Shop: Accounts receivable, December 31, 2025 $43,000 (debit) Allowance for Bad Debts, December 31, 2025 prior to adjustment 2,000 (debit) Net credit sales for 2025 177,000 Accounts written off as uncollectible during 2025 15,000 Cash sales during 2025 29,500 Bad debts expense is estimated by the aging−of−receivables method. Management estimates that $5,100 of accounts receivable will be uncollectible. Calculate the amount of bad debts expense for 2025. A. $3,100 B. $5,350 C. $7,100 D. $9,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following information is from the 2025 records of Albert Book Shop:
|
Accounts receivable, December 31, 2025
|
$43,000
(debit) |
|
Allowance for Bad Debts, December 31, 2025
prior to adjustment
|
2,000
(debit) |
|
Net credit sales for 2025
|
177,000
|
|
Accounts written off as uncollectible during 2025
|
15,000
|
|
Cash sales during 2025
|
29,500
|
aging−of−receivables
method. Management estimates that
$5,100
of $3,100
$5,350
$7,100
$9,400
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