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What Bad Debt Expense Would Dinty Report in Its First-Year

Question 22

Multiple Choice

What Bad debt expense would Dinty report in its first-year income statement?


A) $ 50,000
B) $ 82,000
C) $114,000
D) Can't be determined from the given information Bad debts expense Write-offs = Change in Allowance balance.So, Bad debts expense = Change in Allowance balance of $82,000 + Write-offs of $32,000 = $114,000.

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