The following information is from the records of Mountainview Camera Shop: Accounts receivable, December 31, 2018 $83,000 (debit) Net credit sales for 2018 160,000 Accounts written off as uncollectible during 2018 15,000 Cash sales during 2018 41,000 The company uses the direct write-off method for bad debts. What is the amount of bad debts expense? OA. $62,000 B. $41,000 C. $15,000 D. $83,000
The following information is from the records of Mountainview Camera Shop: Accounts receivable, December 31, 2018 $83,000 (debit) Net credit sales for 2018 160,000 Accounts written off as uncollectible during 2018 15,000 Cash sales during 2018 41,000 The company uses the direct write-off method for bad debts. What is the amount of bad debts expense? OA. $62,000 B. $41,000 C. $15,000 D. $83,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![The following information is from the records of Mountainview Camera Shop:
Accounts receivable, December 31, 2018
Net credit sales for 2018
Accounts written off as uncollectible during 2018
15,000
Cash sales during 2018
41,000
The company uses the direct write-off method for bad debts. What is the amount of bad debts expense?
OA. $62,000
B. $41,000
C. $15,000
D. $83,000
$83,000 (debit)
160,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F718c8921-36b7-4556-a312-6cb9f9aef1c4%2Fabe0eabc-4504-4b90-9433-8998bad2174f%2Fb0xl7k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following information is from the records of Mountainview Camera Shop:
Accounts receivable, December 31, 2018
Net credit sales for 2018
Accounts written off as uncollectible during 2018
15,000
Cash sales during 2018
41,000
The company uses the direct write-off method for bad debts. What is the amount of bad debts expense?
OA. $62,000
B. $41,000
C. $15,000
D. $83,000
$83,000 (debit)
160,000
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