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How much bad debt expense must the company recognize

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Reference no: EM132701671

Problem 1: Sales on account for the month are $900,000. The month-end accounts receivable balance is $192,000. The allowance for uncollectible accounts is calculated as 5% of the receivables balance. If the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment, how much bad debt expense must the company recognize?

a. $ 45,000
b. $ 43,000
c. $ 7,600
d. $ 9,600

Reference no: EM132701671

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