Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12k in the allowance for doubtful accounts. If the companh estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expenses recognized for the year? a.) 390k b.) 378k c.) 402k d.) 1,440,000

Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12k in the allowance for doubtful accounts. If the companh estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expenses recognized for the year? a.) 390k b.) 378k c.) 402k d.) 1,440,000

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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