Aardvark Resale
This company sells merchandise only on credit.For the year ended December 31,2012,the following data are available:
$\begin{array}{ll}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Account Receivable-J anuary 1, 2012 } & 225,000 \
\text { Allowance for doubtful accounts-Januayy } 1,2012 & 15,000 \
\text { Collections during 2012 } & 1,050,000 \
\text { Accountswritten off as uncollected during } 2012 & 10,000
\end{array}$
-Refer to Aardvark Resale.Assume that the company estimates bad debts based on the aging method,and the aging schedule indicates that $30,100 of the year-end accounts receivable will be uncollected.
A) What amount will the company recognize as bad debts expense for the year?

Question

Aardvark Resale
This company sells merchandise only on credit.For the year ended December 31,2012,the following data are available:
 $\begin{array}{ll}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Account Receivable-J anuary 1, 2012 } & 225,000 \
\text { Allowance for doubtful accounts-Januayy } 1,2012 & 15,000 \
\text { Collections during 2012 } & 1,050,000 \
\text { Accountswritten off as uncollected during } 2012 & 10,000
\end{array}$ 
-Refer to Aardvark Resale.Assume that the company estimates bad debts based on the aging method,and the aging schedule indicates that $30,100 of the year-end accounts receivable will be uncollected.
 A) What amount will the company recognize as bad debts expense for the year?

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The Answer of Aardvark Resale
This company sells merchandise only on credit.For the year ended December 31,2012,the following data are available:
 $\begin{array}{ll}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Account Receivable-J anuary 1, 2012 } & 225,000 \
\text { Allowance for doubtful accounts-Januayy } 1,2012 & 15,000 \
\text { Collections during 2012 } & 1,050,000 \
\text { Accountswritten off as uncollected during } 2012 & 10,000
\end{array}$ 
-Refer to Aardvark Resale.Assume that the company estimates bad debts based on the aging method,and the aging schedule indicates that $30,100 of the year-end accounts receivable will be uncollected.
 A) What amount will the company recognize as bad debts expense for the year?

Aardvark Resale This Company Sells Merchandise Only on Credit -Refer to Aardvark Resale

Aardvark Resale
This Company Sells Merchandise Only on Credit -Refer to Aardvark Resale