FIN. ACC.:TOOLS F/BUS DECISION MAKING
FIN. ACC.:TOOLS F/BUS DECISION MAKING
9th Edition
ISBN: 9781119791089
Author: Kimmel
Publisher: WILEY
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Chapter 13, Problem 13.8EYCT
To determine

To draft: Memo to LD providing explanation for analysis of financial statements.

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Upon completing an aging analysis of accounts receivable, the accountant for Richmond Industries prepared an aging of accounts receivable and estimated that $7,200 of the $115,400 accounts receivable balance would be uncollectible. The allowance for doubtful accounts had a $620 debit balance at year-end prior to adjustment. How much is the bad debt expense? a. $620 b. $6,580 c. $7,820 d. $7,200
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