A Company Has a Debit Balance of $3,500 in the Allowance

Multiple Choice

A company has a debit balance of $3,500 in the Allowance for Doubtful Accounts.It estimates that 2% of net credit sales of $1,500,000 will be uncollectible.The required journal entry to record bad debt expense should include a debit to:

A) Allowance for Doubtful Accounts for $30,000.
B) Allowance for Doubtful Accounts for $33,500.
C) Bad Debt Expense for $33,500.
D) Bad Debt Expense for $30,000.