CALCULATOR PRINTER VERSION BACK NEX Multiple Choice Question 99 Coronado Industr

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CALCULATOR PRINTER VERSION BACK NEX Multiple Choice Question 99 Coronado Industries has outstanding accounts receivable totaling $6.11 million as of December 31 and sales on credit during the year of $29.4 million. There is also a debit balance of $11500 in the allowance for doubtful accounts. If the | company estimates that 8% of its outstanding receivables will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense? O $477300. O $500300. $ 488800. O $2352000. Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Year End A/c Receivable = $6.11 millions

Sales on Credit = $29.4 million

Allowance for doubtful accounts = $11500 debit

Company estimates 8% of acc receivable will be uncollectible

Year End doubtful accounts = A/c Receivable * 8%

     = 6.11 * 8% = $0.4888 million or $488800

Bad Debt recognised during the year = 488800 + 11500 = $500300

But year End doubtful a/c = $488800

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