Barry Waterhouse uses the aging of Accounts Receivable balance sheet approach to estimate uncollectibles. Not yet due accounts are $260,000, with an estimated uncollectible percentage of 1%. 1-30 days past due accounts are $38,000, with an estimated uncollectible percentage of 5%. Over 30 days past due accounts are $10,700, with an estimated uncollectible percentage of 12%. If the company has a credit balance in Allowance for Doubtful Accounts of $1,000, what is the bad debts expense adjusting entry amount? (Round any intermediate calculations and your final answer to the nearest dollar.)
A) $5,784
B) $6,784
C) $4,784
D) $2,184

Question

Quizplus · Accepted Answer

The Answer of Barry Waterhouse uses the aging of Accounts Receivable balance sheet approach to estimate uncollectibles. Not yet due accounts are $260,000, with an estimated uncollectible percentage of 1%. 1-30 days past due accounts are $38,000, with an estimated uncollectible percentage of 5%. Over 30 days past due accounts are $10,700, with an estimated uncollectible percentage of 12%. If the company has a credit balance in Allowance for Doubtful Accounts of $1,000, what is the bad debts expense adjusting entry amount? (Round any intermediate calculations and your final answer to the nearest dollar.)
A) $5,784
B) $6,784
C) $4,784
D) $2,184

Barry Waterhouse Uses the Aging of Accounts Receivable Balance Sheet