Graham Company uses the aging method in setting its allowance for doubtful receivables. Allowance for doubtful accounts prior to adjustment has a credit balance of $2,000 Management estimates that due to the economic crisis a higher level of allowance is necessary and decides that a $5,900 allowance is an appropriate amount at the year-end. The amount of expense to report on the income statement will be: 

a.  $3,900 

b. $5,200 

c. $1,000 

d. $5,900

Answer rating: 100% (QA)

Solution a 3900 Explanation Appropriate ending b... View the full answer