Smart-T Corporation Uses the Aging-Of-Accounts-Receivable Method to Estimate Uncollectible Receivables

Multiple Choice

Smart-T Corporation uses the aging-of-accounts-receivable method to estimate uncollectible receivables. At year end Smart-T estimates that $4,750 of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts has a credit balance of $200. Bad debt expense to be reported on the income statement is:

A) $4,750
B) $4,550
C) $200
D) $4,950