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Home Q & A Board Other Fields Homework Help Business Accounting
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H3Ko H3Ko
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8 years ago
At the beginning of 2017, Brady, Inc. has the following account balances:

Accounts Receivable $43,000 (Debit)
Allowance for Bad Debts $8,000 (Credit)
Bad Debts Expense $0

During the year, credit sales amounted to $840,000. Cash collected on credit sales amounted to $790,000, and $17,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The amount of bad debts expense for 2017 is  ________.
A) $41,825
B) $17,000
C) $21,000
D) $12,000
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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8 years ago
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H3Ko Author
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#2
8 years ago
Really appreciate your help. Sorry for taking so long to thank you, you deserve the recognition.
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#3
8 years ago
I'm liking this Slight Smile
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