As of December 31, 2018, Amy Jo's Appliances had unadjusted account balances in accounts receivable of $311,000 and $970 in the allowance for uncollectible accounts, following 2018 write-offs of $6,450 in bad debts. An analysis of Amy Jo's December 31, 2018, accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for 2018 should be:

Question

Quizplus · Accepted Answer

$\begin{array}{lr}
\text {A/R 12/31/2018 }&\$311,000\&\times 2\%\
\text {Allowance balance required }&\$6,220\
\text {Pre-adjustment Allowance balance }&(970)\\text { Bad debt expense }&\$5,250
\end{array}$

As of December 31, 2018, Amy Jo's Appliances Had Unadjusted