Destin Deals estimates its uncollectible accounts by aging its accounts receivab

Question

Destin Deals estimates its uncollectible accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. Destin Deals' computes a total of $1,680 in estimated uncollectible accounts as of December 31, 2011. Its Accounts Receivable account has a balance of $56,400 and its Allowance for Doubtful Accounts has a credit balance of $240 before adjustment at December 31, 2011. How much bad debts expense will Destin Deals' report in 2011?
Answer
A. $ 240
B. $1,440
C. $1,680
D. $1,920

Explanation / Answer

1680+240=1920 answer is D

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