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

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