What amount should be reported as the bad debt expense

Assignment Help Financial Accounting

Reference no: EM13911851

On December 31, 2013, Hanks Company's accounts receivable balance was of $300,000, and an analysis of their accounts receivable suggests that the Allowance for Doubtful Accounts should be 2% of accounts receivable. The balance in the Allowance for Doubtful Accounts on January 1, 2013 was $5,970 (credit). During the year 2013, the company wrote off $6,450 of bad debts. What amount should be reported as the Bad debt expense for the year 2013?

A. $5,520

B. $6,000

C. $6,200

D. $6,480

Reference no: EM13911851

Questions Cloud

Importance of financial account to economic indicators : Propose the similarities and differences of current account and financial account in the balance of payments structure. In doing so, apply your analysis to explain the trade balance between U.S, and China.

What proportion of us residents who believed that amount : What proportion of the U.S. residents who believed that the amount of violent programming had increased believed that the overall quality of programming had decreased?

Calculate the amount of return you would earn : You have accumulated $12,000 and are looking for the best rate of return that can be earned over the next year. A bank savings account will pay 5%. A one-year bank certificate of deposit will pay 8%, but the minimum investment is $15,000.

Calculate the firms turnover and average total assets : Firm D has net income of $66,640, sales of $2,380,000, and average total assets of $680,000. Calculate the firm's margin, turnover, and ROI.

What amount should be reported as the bad debt expense : On December 31, 2013, Hanks Company's accounts receivable balance was of $300,000, and an analysis of their accounts receivable suggests that the Allowance for Doubtful Accounts should be 2% of accounts receivable. The balance in the Allowance for Do..

Does the advertisement seem to have been effective : What proportion of the individuals surveyed who recalled seeing the advertisement had purchased Fresh? Based on your answer to part a, does the advertisement seem to have been effective? Explain.

What contemporary factors contribute to internationalization : What contemporary factors are contributing to the internationalization of the subject of Finance and What contemporary factors are contributing to the internationalization of the subject of Finance?

What is the probability that a directly exposed : According to the Annual death rate from malignant neoplasms table, what is the probability that a directly exposed hibakusha (Person-years 1968-1972) living within 2 kilometers of Hiroshima would die: All hibakusha and Non-hibakusha

Using the LIFO perpetual inventory method : Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4. Using the LIFO perpetual inventory method, what amount will be reported in cost of goods..

User Account

All Pages