Chiller Company has credit sales of $5.60 million for year 2013.Chiller estimates that 1.32% of the credit sales will not be collected.Historically,4% of outstanding accounts receivable is uncollectible.On December 31,2013,the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $3,561.Chiller prepares a schedule of its December 31,2013,accounts receivable by age.Based on past experience,it estimates the percent of receivables in each age category that will become uncollectible.This information is summarized here: Assuming the company uses the percent of sales method,
-What is the amount that Chiller will enter as the Bad Debt Expense in the December 31 adjusting journal entry?
A)$55,439.41
B)$73,920.00
C)$48,317.41
D)$70,359.00
E)$66,167.80

Question

Chiller Company has credit sales of $5.60 million for year 2013.Chiller estimates that 1.32% of the credit sales will not be collected.Historically,4% of outstanding accounts receivable is uncollectible.On December 31,2013,the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $3,561.Chiller prepares a schedule of its December 31,2013,accounts receivable by age.Based on past experience,it estimates the percent of receivables in each age category that will become uncollectible.This information is summarized here:  Assuming the company uses the percent of sales method,
-What is the amount that Chiller will enter as the Bad Debt Expense in the December 31 adjusting journal entry?
A)$55,439.41 
B)$73,920.00 
C)$48,317.41 
D)$70,359.00 
E)$66,167.80

Quizplus · Accepted Answer

The Answer of Chiller Company has credit sales of $5.60 million for year 2013.Chiller estimates that 1.32% of the credit sales will not be collected.Historically,4% of outstanding accounts receivable is uncollectible.On December 31,2013,the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $3,561.Chiller prepares a schedule of its December 31,2013,accounts receivable by age.Based on past experience,it estimates the percent of receivables in each age category that will become uncollectible.This information is summarized here:  Assuming the company uses the percent of sales method,
-What is the amount that Chiller will enter as the Bad Debt Expense in the December 31 adjusting journal entry?
A)$55,439.41 
B)$73,920.00 
C)$48,317.41 
D)$70,359.00 
E)$66,167.80

Chiller Company Has Credit Sales of $5