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McConnell's Bakeries Had the Following Balances on December 31,2012,before Any

Question 57

Multiple Choice

McConnell's Bakeries had the following balances on December 31,2012,before any adjustment: Accounts Receivable = $100,000; Allowance for Uncollectible Accounts = $4,100 (credit) .McConnell's estimates uncollectible accounts based on an aging of accounts receivable as shown below:
 Age Group  (days past due)   Accounts  Receivable  Estimated Percent  Uncollectible  Not yet due $50,0004%030$20,0008%3160$18,00010% More than 60$12,00040%\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Age Group } \\\text { (days past due) }\end{array} & \begin{array} { c } \text { Accounts } \\\text { Receivable }\end{array} & \begin{array} { c } \text { Estimated Percent } \\\text { Uncollectible }\end{array} \\\hline \text { Not yet due } & \$ 50,000 & 4 \% \\\hline 0 - 30 & \$ 20,000 & 8 \% \\\hline 31 - 60 & \$ 18,000 & 10 \% \\\hline \text { More than } 60 & \$ 12,000 & 40 \% \\\hline\end{array}
What amount of bad debt expense did McConnell's record in its December 31,2012,adjustment to the allowance account?


A) $10,200.
B) $12,800.
C) $15,300.
D) $6,100.

Correct Answer:

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