What is the balance in the allowance for doubtful accounts

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Question - Jeanneret Company has provided the following information prior to a year-end bad debt adjustment:

Cash sales, $140,000

Credit sales, $320,000

Selling and administrative expenses, $130,000

Sales returns and allowances, $31,000

Gross profit, $520,000

Accounts receivable ending balance is $310,000

Sales discounts, $15,000

Allowance for doubtful accounts credit balance, $1,900

Jeanneret prepares an aging of accounts receivable and the result shows that 2% of accounts receivable is estimated to be uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?

1. $6,200

2. $8,100

3. $4,300

4. $6,400

Reference no: EM132799286

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