ABC Company has a year end of December 31, 2022 As the auditor for the company, you have been given the following information Accounts receivable balance as of December 31, 2022, is $800,000 Allowance for doubtful accounts balance as of December 31, 2022, is $40,000 The company 's management estima...

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ABC Company has a year-end of December 31, 2022. As the auditor for the company, you have

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ABC Company has a year-end of December 31, 2022. As the auditor for the company, you have been given the following information:

Accounts receivable balance as of December 31, 2022, is $800,000.
Allowance for doubtful accounts balance as of December 31, 2022, is $40,000.
The company's management estimates that 3% of accounts receivable are uncollectible.

Calculate the amount of bad debt expense that ABC Company should report in its income statement for the year ended December 31, 2022.

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Accounting concepts and applications

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Authors: Albrecht Stice, Stice Swain

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Posted Date: Mar 06, 2023 05:43 AM

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ABC Company has a year-end of December 31, 2022. As the auditor for the company, you have

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Accounting concepts and applications

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