Time remaining: 0 45:02 Fiyer Company has provided the following information pri

Question

Time remaining: 0 45:02 Fiyer Company has provided the following information prior to eny year-end bad debt adjustment Cash sales, $168,000 Credit sales, $468,000 e Selling and adminisrative expenses, $128,000 Sales returns and allowances, $48,000 Gross proft, $50B,000 Accounts receivable, $285,000 Sales discounts, $32.000 . Allowance for doubtful accounts credit balance, $3,000 Ryer prepares an aging of accounts receivable andthe res it shows that 3% o, accounts receivable is estimated to be ur colectitle what is the bal ce n the alo ance for du tilaccounts after beddeee expense a O$5.550 O $5,460 O $1.550 O $8550 30 2 3 4 7 8 9

Explanation / Answer

Calculate allowance for doubtful accounts balance after bad debt expense recorded :

Allowance for doubtful accounts balance should be (285000*3%) = 8550

so answer is d) $8,550

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