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What will be the amount of bad debt expense recognized

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Question - Bonita Industries has outstanding accounts receivable totaling $6.49 million as of December 31 and sales on credit during the year of $24.7 million. There is also a credit balance of $13000 in the allowance for doubtful accounts. If the company estimates that 5% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year?

a. $1235000.

b. $311500.

c. $337500.

d. $324500.

Reference no: EM132565695

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