REVEL for Accounting Information Systems -- Access Card (14th Edition)
REVEL for Accounting Information Systems -- Access Card (14th Edition)
14th Edition
ISBN: 9780134642628
Author: Marshall B. Romney, Paul J. Steinbart
Publisher: PEARSON
Question
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Chapter 14, Problem 3CQ
To determine

Identify the correct option for the given statement.

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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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