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Accounting

The following information is available for Terry Company:

Allowance for doubtful accounts at December 31, 2012 $ 8,000

Credit sales during 2013 $ 400,000

Accounts receivable deemed worthless and written off during 2013 $ 9,000

As a result of a review and aging of accounts receivable in early January 2014, it has been determined that an allowance for doubtful accounts of $7,500 is needed at December 31, 2013.

What amount should Terry record as "bad debt expense" for the year ended December 31, 2013?

A. $ 6,500

B. $ 7,500

C. $ 8,500

D. $ 15,500

E. None of the above

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M92048991

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