At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $360,000 and in Allowance for Uncollectible Accounts of $1,040 (debit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. Bad debt expense for the year should be:

• $8.870. 
• $9,540.  
• $10,210.  
• $8,771.

Answer rating: 100% (QA)

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