Duncan Personal Services had total sales of $2,000,000 during 2023 of which $200,000 were cash sales....

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Duncan Personal Services had total sales of $2,000,000 during 2023 of which $200,000 were cash sales. At December 31, 2023 the balance in Accounts Receivable was $100,000 and the Allowance for Uncollectible Accounts had a $1,500 credit balance. Duncan uses the Allowance method of accounting for bad debts and estimates bad debts will total 10% of accounts receivable. Assuming no adjusting entries for bad debts were made during the year, what amount of Bad Debt Expense will Duncan report for 2023? Duncan Personal Services had total sales of $2,000,000 during 2023 of which $200,000 were cash sales. At December 31, 2023 the balance in Accounts Receivable was $100,000 and the Allowance for Uncollectible Accounts had a $1,500 credit balance. Duncan uses the Allowance method of accounting for bad debts and estimates bad debts will total 10% of accounts receivable. Assuming no adjusting entries for bad debts were made during the year, what amount of Bad Debt Expense will Duncan report for 2023?

Answer rating: 100% (QA)

To calculate the amount of Bad Debt Expense that Duncan will report for 2023 we need to determine th... View the full answer