apters 7-9 x ezto,mheducation.com/hm.tpx Vine Company began operations on Januar

Question

apters 7-9 x ezto,mheducation.com/hm.tpx Vine Company began operations on January 1. 2013 During its first year, the company completed a number of transactions recelvable collections, and bad debts. Vine Company is using the allowance method to account for bad debts. These trans Sold $1,358,300 of merchandise (that had cost S993,600) on credit, terms n/30 b Wrote off $21.400 of uncollectible accounts receivable c Received $676,100 cash in payment of accounts receivable d In adjusting the accounts on Decembe timated that 190% of accounts receivable will be uncol lectible What is the amount required for the adjusting journol entry to record bad debt expense? O $33,955 20 O $2580770 O $1296180 O $12.555.20 O $12.734 20 e here to search 0 6 4 2

Explanation / Answer

Ending accounts receivable=1358300-21400-676100= $660800 Amount of adjusting entry=(660800*1.9%)+21400= $33955.20 Option 1 is correct

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