at the year end, Chief company has a balance of $16,000 in accounts receivable of which...

at the year end, Chief company has a balance of $16,000 in accounts receivable of which $1,600 is more than 30 days overdue. Chief has a credit balance of $160 in the allowance for doubtful accounts before any year-end adjustments. using the aging of accounts receivable method, Chief estimates that 1.5% of current accounts and 11% of accounts over 30 days are uncollectible. what is the amount of bad debt expense? a 232. b 392. c 552. d160.

Expert Solution

Correct answer-------------(a) $232

Working

	Accounts receivables	x	Percent Uncollectable (%)	=	Estimated Uncollectable
Current	$ 14,400.00	x	1.50%	=	$ 216.00
More than 30 days due	$ 1,600.00	x	11.00%	=	$ 176.00
Estimated balance of allowance for doubtful accounts	$ 392.00

.

Estimated balance of allowance for uncollectables	$ 392.00	Cr
Balance in Allowance for uncollectable account (Cr)	$ 160.00	Cr
Total bad debts to be recorded	$ 232.00	Cr

ekkarill92 answered 1 year ago

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at the year end, Chief company has a balance of $16,000 in accounts receivable of which...

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