Debts expense is estimated by aging-of-receivables method

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The Following Information Is From the 2015 record of Armand Camera Shop Accounts Receivable, Dec 31,2015 $40,000 (debit) Allowance for Bad Debts Dec,31,2015 prior to adjustment is $1,500(debit) Net credit sales for 2015 is $175,000 Account written off as uncollectible during 2015 is $15,000 Cash sales during 2015 is $27,000 Bad debts expense is estimated by the aging-of-receivables method. Management estimates that $5000 of accounts receivable will be uncollectible . Calculate the Allowance for Bad Debts after the adjustment for bad debt expense at December 31,2015. A. 5,250 B. 7,000 C. 5,000 D. 6,500

Reference no: EM131202972

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Debts expense is estimated by aging-of-receivables method : The Following Information Is From the 2015 record of Armand Camera Shop Accounts Receivable, Dec 31,2015 $40,000 (debit) Allowance for Bad Debts Dec,31,2015 prior to adjustment is $1,500(debit) Net credit sales for 2015 is $175,000 Account written of..

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