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Trowel Corp. has outstanding accounts receivable totaling $13,000,000 as of December 31 and sales on credit during the year of $48,000,000. There is also a credit balance of $24,000 in the allowance for
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Trowel Corp. has outstanding accounts receivable totaling $13,000,000 as of December 31 and sales on credit during the year of $48,000,000. There is also a credit balance of $24,000 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year

User David Addoteye
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Answer:

$756,000

Step-by-step explanation:

Allowance for Bad Debts opening ($24,000)

Allowance for Bad Debts Closing $780,000

(13,000,000)*6%

Allowance Bad Debt Expense for the year $756,000

User Bessoufi Mounir
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