Using the Percentage-Of-Receivables Method for Recording Bad Debt Expense, Estimated

question 62

Multiple Choice

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $32,000. If the balance of the Allowance for Doubtful Accounts is $8,000 debit before adjustment, what is the amount of bad debt expense for that period?

• A) $8,000
• B) $24,000
• C) $32,000
• D) $40,000

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