Ayayai Corp. has outstanding accounts receivable totaling $7.60 million as of December 31 and sales on...

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Ayayai Corp. has outstanding accounts receivable totaling $7.60 million as of December 31 and sales on credit during the year of $23 million. There is also a credit balance of $20500 in the allowance for doubtful accounts. If the company estimates that 7% of its outstanding receivables will be uncollectible, what amount of bad debt expense will be reported on Ayayai's income statement? Ayayai Corp. has outstanding accounts receivable totaling $7.60 million as of December 31 and sales on credit during the year of $23 million. There is also a credit balance of $20500 in the allowance for doubtful accounts. If the company estimates that 7% of its outstanding receivables will be uncollectible, what amount of bad debt expense will be reported on Ayayai's income statement?

Answer rating: 100% (QA)

Answer To calculate the bad debt expense we need to determine the estimated amount of uncollectible ... View the full answer