On January 1, 2022, Lavazzas Accounts Receivable balance was $120,000, and the balance in the...
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Accounting
On January 1, 2022, Lavazzas Accounts Receivable balance was $120,000, and the balance in the Allowance for Doubtful Accounts was a credit balance of $6,000. During 2023, Lavazza recorded the following transactions:
| Credit Sales | $160,000 |
| Collections from customers | $130,000 |
| Accounts written-off | $2,400 |
| Collections on accounts previously written off | $1,200 |
If Lavazza estimates 1% of credit sales to be uncollectible, the bad debt expense for 2023 would be:
Select one:
a. $1,300
b. $1,600
c. $240
d. $1,416
e. $1,440
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