Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2016, net credit sales totaled $4,200,000, and the estimated bad debt percentage is 1.25%. The allowance for uncollectible accounts had a credit balance of $40,000 at the beginning of 2016 and $42,000, after adjusting entries, at the end of 2016.
What is bad debt expense for 2016?
A. $40,000
B. $42.000
C. $50,500
D. $52.500
Answers: 1
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Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt...
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