Wellington Corp. has outstanding accounts receivable totaling 2.54 million as of December 31 and sales on credit
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Question:
Wellington Corp. has outstanding accounts receivable totaling €2.54 million as of December 31 and sales on credit during the year of €12.8 million. There is also a debit balance of €6,000 in the allowance for doubtful accounts. If the company estimates that 1% of its net credit sales will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?
a. € 25,400
b. € 31,400
(c.) €122,000
d. €134,000
MY QUESTION IS why doesn't this question account for this highlighted text in the slide?
Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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