p35 - Test Bank for Intermediate Accounting, Twelfth...

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Test Bank for Intermediate Accounting, Twelfth Edition 7 - 14 65. Delgado Corporation had a 1/1/07 balance in the Allowance for Doubtful Accounts of $20,000. During 2007, it wrote off $14,400 of accounts and collected $4,200 on accounts previously written off. The balance in Accounts Receivable was $400,000 at 1/1 and $480,000 at 12/31. At 12/31/07, Delgado estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2007? a. $4,000. b. $14,200. c. $18,400. d. $24,000. 66. Burnett Corporation had a 1/1/07 balance in the Allowance for Doubtful Accounts of $15,000. During 2007, it wrote off $10,800 of accounts and collected $3,150 on accounts previously written off. The balance in Accounts Receivable was $300,000 at 1/1 and $360,000 at 12/31. At 12/31/07, Burnett estimates that 5% of accounts receivable will prove to be uncollectible. What should Burnett report as its Allowance for Doubtful Accounts at 12/31/07? a. $7,200.
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This note was uploaded on 11/03/2011 for the course ACCT 3223 taught by Professor Peck during the Spring '11 term at Texas State.

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p35 - Test Bank for Intermediate Accounting, Twelfth...

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