Richards Company Uses the Allowance Method of Accounting for Bad

question 74

Multiple Choice

Richards Company uses the allowance method of accounting for bad debts. The following summary schedule was prepared from an aging of accounts receivable outstanding on December 31 of the current year.

The following additional information is available for the current year:

See Richards Company information above. If Richards bases its estimate of bad debts on the aging of accounts receivable, doubtful accounts expense for the current year ending December 31 is

• A) $47,000.
• B) $48,000.
• C) $50,000.
• D) $52,000.

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