On December 31, 2021, Andy Inc. has a credit balance of $1,500 for the Allowance...
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Accounting
On December 31, 2021, Andy Inc. has a credit balance of $1,500 for the Allowance for Doubtful Accounts before any year-end adjustment. Andy Inc. also has the following information for its accounts receivable and the estimated percent uncollectible for different past-due amounts: Age Group Accounts Estimated Percent Uncollectible (days past due) Receivable 0-30 $ 50,000 5 % 31-60 $ 20,000 10 % 61-90 $ 10,000 20 % What is the amount of bad debt expense to be reported on Andy Inc.'s financial statements for 2021 using the aging of accounts receivable method? O $5,000 O $8,000 O $6,500 O $1,500 O $6,500
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