At the End of 2003, the Following Balances Appeared in the Ledger

question 125

Short Answer

At the end of 2003, the following balances appeared in the ledger accounts of a company prior to the adjusting and closing entries: $\begin{array} { | l | l | } \hline \text { Accounts receivable } & \$ 156,000 \\\hline \text { Allowance for doubtful accounts } & 5,200 \\\hline \text { Credit sales } & 390,000 \\\hline \text { Account receivable to be written off } & 1,300 \\\hline\end{array}$ The estimated bad debt rate used by the company, based on outstanding customer receivables, is 3 percent. The amount that should be used in the correcting entry to record bad debt expense at the end of 2003 is $___________________.

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Definitions:

Multicultural Population

A group of people from various cultural, racial, linguistic, and religious backgrounds living in the same community or country.

Geographical Location

The specific physical place where something exists, which can influence various aspects like lifestyle, job opportunities, and business operations.

Extractive Industries

Sectors involved in the extraction of natural resources from the earth, such as mining, oil, and gas.

National Wealth

The total value of a nation's assets and resources, often used as a measure of the country's economic health.