Multiple Choice Question 98 Marigold Corp. has outstanding accounts receivable t

Question

Multiple Choice Question 98 Marigold Corp. has outstanding accounts receivable totaling $6.58 million as of December 31 and sales on credit during the year of $24.7 million. There is also a credit balance of ' accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense the allow $ 1482000. O $382800. $406800. $394800. Click if you would like to show work for this question: geenshotVbk Question Attempts: 0 of i usedSAVE FOR LATEn answer this question correctly in vour first attemspt

Explanation / Answer

The answer is $ 382,800 will be the debt expenses.

Calculation:

Actual Bad debts $6.58milion*6% $ 394,800

Less: Amount credited in PFBD $12,000

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