Question: A company has $ 9 5 , 0 0 0 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts.

A company has $95,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 5% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $850 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:
Multiple Choice
$4,750
$3,900
$4,793
$4,708
$5,600
A company has $ 9 5 , 0 0 0 in outstanding

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