On January 1, a company's allowance for doubtful accounts had a credit balance of $18,000....
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Accounting
On January 1, a company's allowance for doubtful accounts had a credit balance of $18,000. During the year, it had net credit sales of $750,000 and it had $30,000 of uncollectible accounts receivable that were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage-of-receivables basis). If the accounts receivable balance at December 31 is $200,000, what is the bad debt expense for the year? $32,000 $30,000 No credit adjustment needed $20,000 $28,000
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