Flyer Company Has Provided the Following Information Prior to Any

question 28

Multiple Choice

Flyer Company has provided the following information prior to any year-end bad debt adjustment: • Cash sales,$150,000
• Credit sales,$450,000
• Selling and administrative expenses,$110,000
• Sales returns and allowances,$30,000
• Gross profit,$490,000
• Accounts receivable,$110,000
• Sales discounts,$14,000
• Allowance for doubtful accounts credit balance,$1,200
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Flyer prepares an aging of accounts receivable and the result shows that 5% of accounts receivable is estimated to be uncollectible.How much is bad debt expense?

• A)$5,500.
• B)$6,700.
• C)$4,240.
• D)$4,300.

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Definitions:

Red Eyes

Refers to an eye color in some animals, resulting from the reflection of light in the eyes or lack of pigmentation.

Multiple Allele System

A situation in genetics where more than two alleles exist for a given gene within a population.

Gene

A unit of heredity made up of DNA that is responsible for a particular trait or function in living organisms.

Population

refers to all the members of a particular species living in a specific geographic area, capable of interbreeding.