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H3Ko H3Ko
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7 years ago
The following information is from the 2017 records of Lane Bicycle Shop:

Accounts receivable, December 31, 2017   $40,000 (debit)
Allowance for Bad Debts, December 31, 2017
prior to adjustment   1,900 (debit)
Net credit sales for 2017   177,000
Accounts written off as uncollectible during 2017   18,000
Cash sales during 2017   27,000

Bad debts expense is estimated by the aging-of-receivables method. Management estimates that $5,000 of accounts receivable will be uncollectible. Calculate the ending balance of Allowance for Bad Debts, after the adjustment for bad debts expense, at December 31, 2017.
A) $5,000
B) $5,310
C) $9,000
D) $8,800
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
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Mrgo-breedMrgo-breed
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H3Ko Author
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#2
7 years ago
YES! Can't believe I got this one right. Appreciate the confirmation
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#3
7 years ago
I'm liking this Slight Smile
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