What amount should be debited to bad debts expense


Problem: On the books of ABAC Farms at December 31 of the current year, the unadjusted trial balance included the following: Accounts Receivable, debit balance of $95,250; Allowance for Doubtful Accounts, credit balance of $921. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible? Question options: $5,715. $5,715. $4,794. $5,770

 

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Accounting Basics: What amount should be debited to bad debts expense
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