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Question - On January 1, 2019, Allowance for Doubtful Accounts had a credit balance of sh54,000. During 2019, sh 90,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was sh 600,000, what is the required amount to be recorded as an expense in the P/L account, 31,2019 with regard to bad debts and doubtful debts?
a. sh 60,000
b. sh 6,000
c. sh 96,000
d. sh 90,00
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