Smithson Corporation's Unadjusted Trial Balance Includes the Following Balances (Assume $\begin{array}{ll}\text { Accounts Receivable } & \$ 3,357,000 \\\text { Alowances for Doubtful Accounts } & \$ 63,900\end{array}$

question 246

Multiple Choice

Smithson Corporation's unadjusted trial balance includes the following balances (assume normal balances) : $\begin{array}{ll}\text { Accounts Receivable } & \$ 3,357,000 \\\text { Alowances for Doubtful Accounts } & \$ 63,900\end{array}$ Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

• A) $201,420
• B) $137,520
• C) $133,686
• D) $205,254

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