Murphy Company's Accounts Receivable has a balance of $200,000 as of December 31, 2022. The company had
Question:
Murphy Company's Accounts Receivable has a balance of $200,000 as of December 31, 2022. The company had $1,600,000 in credit sales during 2022. In the past, 2% of credit customers have not paid their bills.
Murphy Corporation uses the Analysis of Accounts Receivable method to recognize uncollectible accounts/bad debts. The accountants at Murphy Company reviewed the company's Accounts Receivable customer balances and determined that the Allowance for Doubtful Accounts should be $16,000as of December 31, 2022.
If the Allowance for Doubtful Accounts before the adjustment was a debit balance of $3,000 what will be the amount of the debit to Bad Debt Expense? (do not use $, commas or decimals in your answer)
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina