question archive George Washington UniversityACCY 2001 1) Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $150,000 Credit sales, $450,000 Selling and administrative expenses, $110,000 Sales returns and allowances, $30,000 Gross profit, $490,000 Accounts receivable ending balance is $120,000 Sales discounts, $14,000 Allowance for doubtful accounts credit balance, $1,400 Flyer prepares an aging of accounts receivable and the result shows that 4% of accounts receivable is estimated to be uncollectible
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George Washington UniversityACCY 2001
1) Flyer Company has provided the following information prior to any year-end bad debt adjustment:
Flyer prepares an aging of accounts receivable and the result shows that 4% of accounts receivable is estimated to be uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?
(A) $6,200.
(B) $4,800.
(C) $18,000.
(D) $3,400.
What is the estimated bad debt expense using the percentage of credit sales method?
(A) $4,300.
(B) $1,500.
(D) $4,100.
(A) $24,000.
(B) $24,789.
(C) $20,000.
(D) $20,658.
(A) $420.
(B) $1,680.
(C) $280.
(D) $1,400.