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On April 1, ABC has an Accounts Receivable balance of $190,000. During the month, credit...

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Accounting

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On April 1, ABC has an Accounts Receivable balance of $190,000. During the month, credit sales total $210,000. As a result of collections efforts, the aging of Accounts Receivable is as follows for April 30: Current $100,000 (1% is estimated to be uncollectible) 0-30 Days Past Due $50,000 (5% is estimated to be uncollectible) 31-60 Days Past Due $20,000 (10% is estimated to be uncollectible) 31-90 Days Past Due $10,000 (20% is estimated to be uncollectible) >90 Days Past Due $20,000 (50% is estimated to be uncollectible) Balance in Allowance for Doubtful Accounts (prior to any April 30 entry) $5,000 Credit If ABC is using the % of Accounts Receivable method of estimating its bad debts, what is the increase to bad debt expense at the end of April? $7,500 $2,500 $17,500 $12,500

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