Flyer Company Has Provided the Following

question 92

Multiple Choice

Flyer Company has provided the following
Cash sales,$150,000
Credit sales,$450,000
Selling and administrative expenses,$110,000
Sales returns and allowances,$30,000
Gross profit,$290,000
Accounts receivable,$110,000
Sales discounts,$14,000
Allowance for doubtful accounts credit balance,$1,200
Flyer estimates bad debt expense assuming that 1.5% of credit sales are uncollectible.What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?

• A)$7,950
• B)$6,750
• C)$5,550
• D)$7,800

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