The following information is available for Sunshine Company: Allowance for doubtful accounts at December 31, 2013 -
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Question:
The following information is available for Sunshine Company:
Allowance for doubtful accounts at December 31, 2013 - $ 16,000
Credit sales during 2014 - 800,000
Accounts receivable deemed worthless and written off during 2014 - 18,000
As a result of a review and aging of accounts receivable, it has been determined that an allowance for doubtful accounts of $11,000 is needed at December 31, 2014. What amount should Sunshine record as "bad debt expense" for the year ended December 31, 2014? A. $13,000 B. $9,000 C. $27,000 D. $11,000
Can someone please explain or classify the meaning of each account? I'm getting so confused?
Thank you for your time!
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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