Flora and Fauna Company estimates its doubtful accounts by aging its accounts receivable and applying percentages to various age
d categories of accounts. The Flora and Fauna Company computes a total of $7,200 in estimated doubtful accounts as of December 31, 2016. Its Accounts Receivable account has a balance of $225,600 and its Allowance for Doubtful Accounts has a credit balance of $1,200 before adjustment at December 31, 2016.
Required:
1. How much bad debts expense will Flora and Fauna report in 2016?
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