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    Estimating Bad Debt Expense

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    Gilkey Security Systems has the following for the year ended 12-31-09 before adjustments.

    Accounts receivable

    $130,000

    Net Credit Sales

    $840,000

    Allowance for doubtful accounts

    $3,000 debit balance

    Aging of accounts receivable

    $19,000

    Gilkey uses the aging method of estimating bad debt expense. The journal entry for estimating bad debt expense at year end is:

    A) Allowance for doubtful accounts 19,000
    Accounts Receivable 19,000
    B) Bad Debts Expense 22,000
    Allowance for doubtful accounts 22,000
    C) Bad Debts Expense 19,000
    Allowance for doubtful accounts 19,000
    D) Allowance for doubtful accounts 22,000
    Bad Debts Expense 22,000

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    Solution Preview

    C) Bad Debts Expense 19,000
    Allowance for doubtful accounts 19,000

    We would ...

    Solution Summary

    This solution provides the correct answer with explanation to the bad debt expense question provided.

    $2.19