Multiple Choice
Darby uses the allowance method to account for uncollectible accounts.Its year-end unadjusted trial balance shows Accounts Receivable of $104,500,allowance for doubtful accounts of $665 (credit) and sales of $925,000.If uncollectible accounts are estimated to be .5% of sales,what is the amount of the bad debts expense adjusting entry?
A) $4,625
B) $3,960
C) $5,290
D) $4,750
E) $4,825
Correct Answer:
Verified
Correct Answer:
Verified
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