Flyer Company Has Provided the Following Information

question 56

Multiple Choice

Flyer Company has provided the following information:
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
Flyer estimates bad debt expense assuming that 5% of accounts receivable is estimated to be uncollectible.What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?

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

---

Definitions:

Genitourinary Assessment

A medical examination focusing on the genital and urinary systems to identify abnormalities, infections, or other health issues.

Intra-abdominal Pressure

The pressure within the abdominal cavity, which can affect organ function and is considered in various medical conditions.

Indirect Inguinal Hernia

A type of hernia where the intestine protrudes through a weak spot in the abdominal wall via the inguinal canal.

Hydrocele

A condition characterized by the accumulation of fluid in the sac around a testicle, often leading to scrotal swelling.