Aspen Corporation Data for Aspen Corporation for the year ended December 31, 2012, are presented below. Credit sales $2,100,000 Sales returns 150,000 Gross accounts receivable (December 31, 2012 ) 420,000 Allowance for bad debts (Before adjustment at December 31, 2012 ) 25,000 Estimated amount of uncollected accounts based on an aging analysis 75,000 Refer to the information provided for Aspen
Corporation. If Aspen uses 4% of net credit sales to estimate its bad debts, what will be the balance in the Allowance for Bad Debts account after the adjustment for bad debts?
A) $ 50,000
B) $103,000
C) $ 78,000
D) $ 75,000
B
Business
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