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question wellington corp has outstanding accounts receivable totaling 3 million as o 4289284

Question

Wellington Corp. has outstanding accounts receivable totaling $3 million as of December 31 and sales on credit during the year of $15 million. There is also a debit balance of $12,000 in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense? $1, 200,000. $ 228,000. $ 240,000. $ 252,000. Black Corporation had a 1/1/10 balance in the Allowance for Doubtful Accounts of $12,000. During 2010, it wrote off $8, 640 of accounts and collected $2, 520 on accounts previously written off. The balance in Accounts Receivable was $240,000 at 1/1 and $288,000 at 12/31. At 12/31/10, Black estimates that 5% of accounts receivable will prove to be uncollectible. What should Black report as its Allowance for Doubtful Accounts at 12/31/10? $5, 760. $5, 880. $8, 280. $14, 400.

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