Swifty Corp. has outstanding accounts receivable totaling $5.85 million as of Dec 31st and sales on credit during the year of $32.2 million. There is also a debit balance of $13k in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the balance in the allowance in for doubtful accounts after the year-end adjustments to record bad debt expense? $468k. $481k. $455k. $2,576,000.

Swifty Corp. has outstanding accounts receivable totaling $5.85 million as of Dec 31st and sales on credit during the year of $32.2 million. There is also a debit balance of $13k in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the balance in the allowance in for doubtful accounts after the year-end adjustments to record bad debt expense? $468k. $481k. $455k. $2,576,000.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

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