What bad debt expense would be for gill co

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Problem 1: As of December 31, 2020, Gill Co. reported accounts receivable of $234,000 and an allowance for uncollectible accounts of $8,900. During 2021, accounts receivable increased by $23,500, (that change includes $7,650 of bad debts that were written off). An analysis of Gill Co.'s December 31, 2021, accounts receivable suggests that the allowance for uncollectible accounts should be 4% of accounts receivable. Bad debt expense for 2021 would be:

Multiple Choice

Option 1: $9,050.
Option 2: $7,650.
Option 3: $10,300.
Option 4: None of these answer choices are correct.

Reference no: EM132968814

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