At year-end, Chief Company has a balance of $12,000 in accounts receivable of which $1,200...
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Accounting
At year-end, Chief Company has a balance of $12,000 in accounts receivable of which $1,200 is more than 30 days overdue. Chief has a credit balance of $120 in the allowance for doubtful accounts before any year-end adjustments. Using the aging of accounts receivable method, Chief estimates that 1.5% of current accounts and 12% of accounts over thirty days are uncollectible. What is the amount of bad debt expense? Multiple Choice
$306.
$186.
$426.
$120.
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