Solution: On December 31, 2002, Typical Fashions had balances in its Accounts receivable and Allowance for uncollectible accounts of $48,400 and $940, respectively. During 2003, Typical Fashions wrote off $820

Problem

On December 31, 2002, Typical Fashions had balances in its Accounts receivable and Allowance for uncollectible accounts of $48,400 and $940, respectively. During 2003, Typical Fashions wrote off $820 in Accounts receivable and determined that there should be an Allowance for uncollectible accounts of $1,140 at December 31, 2003. Bad debt expense for 2003 would be:

a. $   320.

b. $1,140.

c. $   820.

d. $1,020.