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For 2021, Rahal's Auto Parts estimates bad debt expense at 3% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $90,500 and $2,900, respectively, at December 31, 2020. During 2021, Rahal's credit sales and collections were $412,000 and $416,000, respectively, and $3,140 in accounts receivable were written off.
Question 1: Rahal's accounts receivable at December 31, 2021, are:
Multiple Choice
Option 1: $94,500.
Option 2: $91,360.
Option 3: $86,500.
Option 4: $83,360.
Williams's direct instructions Jones and Stevens put themselves outside the course of their employment thus Chemco could not be liable for their actions.
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