At the beginning of 2017, Smoothie Town, Inc has the following account balances
Accounts receivable $44,000 (Debit)
Allowance for Bad Debts $7,000 (Credit)
During the year, credit sales were $820,000. Cash collected on credit sales was $750,000, and $18,000 was written off. Smoothie Town uses the aging-of-receivables method to record bad debts expense. The amount estimated as uncollectible was $26,000. The amount of Bad Debts Expense for 2017 is ________.
A) $37,000
B) $26,000
C) $11,000
D) $8,000
A .Calculations: $26,000 + $18,000 - $7,000 = $37,000.
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