Collision Corporation
Data for Collision Corporation for the Year $~~~~~~$

question 32

Multiple Choice

Collision Corporation
Data for Collision Corporation for the year ended December 31, 2012, are presented below.
Credit Sales $~~~~~~$ $\$ 2,000,000$
Sales retuns and allowances $~~~~~~$ 40,000
Accounts receivable (December 31, 2012) $~~~~~~$ 610,000
Allowance for bad debts
$~~$ (Before adjustment at December 31, 2012) $~~~~~~$ 15,000
Estimated amount of uncollected accounts based on aging analysis $~~~~~~$ 55,000
- Refer to the information provided for Collision Corporation. If Collision uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debt expense for 2012?

• A) $40,000
• B) $55,000
• C) $15,000
• D) $39,200

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