Using the Aging-Of-Accounts-Receivable Method to Estimate Uncollectible Receivables, CMU Corporation

Multiple Choice

Using the aging-of-accounts-receivable method to estimate uncollectible receivables, CMU Corporation estimates that $3,750 of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts has a credit balance of $600. Bad debt expense to be reported on the income statement is:

A) $3,750
B) $3,150
C) $4,350
D) $600