Milling Direct uses the aging of Accounts Receivable balance sheet approach to estimate uncollectibles. The total percentage of not yet due accounts deemed uncollectible are $1,000, 1-30 days past due accounts deemed uncollectible are $1,220, and over 30 days past due accounts deemed uncollectible are $730. If the company has a debit balance in Allowance for Doubtful Accounts of $800, what is the bad debts expense adjusting entry amount?
A) $800
B) $2,950
C) $3,750
D) $2,150

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The Answer of Milling Direct uses the aging of Accounts Receivable balance sheet approach to estimate uncollectibles. The total percentage of not yet due accounts deemed uncollectible are $1,000, 1-30 days past due accounts deemed uncollectible are $1,220, and over 30 days past due accounts deemed uncollectible are $730. If the company has a debit balance in Allowance for Doubtful Accounts of $800, what is the bad debts expense adjusting entry amount?
A) $800
B) $2,950
C) $3,750
D) $2,150

Milling Direct Uses the Aging of Accounts Receivable Balance Sheet