Milling Direct Uses the Aging of Accounts Receivable Balance Sheet

question 1

Multiple Choice

Milling Direct uses the aging of Accounts Receivable balance sheet approach to estimate uncollectibles. The total percentage of not yet due accounts deemed uncollectible are $930, 1-30 days past due accounts deemed uncollectible are $1,210, and over 30 days past due accounts deemed uncollectible are $710. If the company has a credit balance in Allowance for Doubtful Accounts of $850, what is the bad debts expense adjusting entry amount?

• A) $2,000
• B) $2,850
• C) $850
• D) $3,700

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Definitions:

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Pertaining to a supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation.

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Right

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