Respuesta :
Answer:
$47700
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Given that Bad debts are estimated to be 6% of outstanding receivables
Bad debts = 6% * $1,140,000
= $68,400
Amount already accounted for as bad debt = $20700
Bad debt expense to be recorded = $68,400 - $20,700
= $47,700
The amount of bad debt expense will the company record is $47,700.
- The calculation is as follows:
= 6% of account receivable - allowance for doubtful debts
= $=6% of $1140000 - $20700
= $68,400 - $20,700
= $47,700
Therefore we can conclude that the second option is correct.
Learn more: brainly.com/question/6201432
