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Business, 10.04.2020 20:09 hannahbeccahxo9681

Flyer Company has provided the following information prior to any year-end bad debt adjustment:
Cash sales, $156,000
Credit sales, $456,000
Selling and administrative expenses, $116,000
Sales returns and allowances, $36,000
Gross profit, $496,000
Accounts receivable, $165,000
Sales discounts, $20,000
Allowance for doubtful accounts credit balance, $1,800

Flyer prepares an aging of accounts receivable and the result shows that 4% of accounts receivable is estimated to be uncollectible. How much is bad debt expense?

A. $8,400
B. $4,800
C. $4,728
D. $6,600

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Answers: 3

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Flyer Company has provided the following information prior to any year-end bad debt adjustment:
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