Chiller Company Has Credit Sales of $5

question 41

Multiple Choice

Chiller Company has credit sales of $5.60 million for year 2013.Chiller estimates that 1.32% of the credit sales will not be collected.Historically,4% of outstanding accounts receivable is uncollectible.On December 31,2013,the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $3,561.Chiller prepares a schedule of its December 31,2013,accounts receivable by age.Based on past experience,it estimates the percent of receivables in each age category that will become uncollectible.This information is summarized here: Assuming the company uses the percent of sales method,
-What is the amount that Chiller will enter as the Bad Debt Expense in the December 31 adjusting journal entry?

• A)$59,045.80
• B)$51,878.41
• C)$48,317.41
• D)$55,439.41
• E)$66,167.80

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