Bad debt expense for on the income statement

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Reference no: EM131266403

Ortiz Inc. has the following balances before doing adjusting entries for the year ended 12/31/Year6. All sales were on credit (and were recorded earlier in the period.). The allowance has a normal (credit) balance (i.e. it is a negative asset.) Accounts receivable 100,000 debit Allowance for Uncollectible accounts 900 credit Sales revenue 500,000 credit Assume Ortiz Inc. uses the % of accounts receivable method and estimates that 4% of accounts receivable will be uncollectible. What will Ortiz Inc. report as bad debt expense for on the income statement for the year ended 12/31/Year6? A. 24,000 B. 3,100 C. 4,000 D. 4,900

Reference no: EM131266403

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