As of december 31, 2015, gill co. reported accounts receivable of $218,000 and an allowance for uncollectible accounts of $8,800. during 2016, accounts receivable increased by $22,400 , and $7,650 of bad debts were written off. an analysis of gill co.'s december 31, 2016, accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. bad debt expense for 2016 would be: $6,062.$7,212.none of these answer choices are correct.$7,650.

Option (A) is correct.

Explanation:

Accounts receivable as on 12/31/2016 = $218,000

A/R as on 12/31/2017:

= Accounts receivable as on 12/31/2016 + Increase in A/R

= $218,000 + $22,400

= $240,400

uncollectible accounts = 3% of accounts receivable

                                      = 0.03 × $240,400

                                      = $7,212

Allowance 12/31/2016 = $8,800

Writes Off = $7,650

Therefore,

Allowance = Allowance 12/31/2016 - Writes Off

                 = $8,800 - $7,650

                 = $1,150

Hence,

Bad debt expense for 2016 = uncollectible accounts - Allowance

                                              = $7,212 - $1,150

                                              = $6,062

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

just took it 100%

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )