Calculate balance in the allowance for doubtful accounts


Charley Corp. has outstanding accounts receivable totaling $2.54 million as of December 31 and sales on credit during the year of $12.9 million. There is also a credit balance of $5,000 in the allowance for doubtful accounts. If the company estimates that 1% of its net credit sales will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?

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Accounting Basics: Calculate balance in the allowance for doubtful accounts
Reference No:- TGS0555436

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