Emma's Clothes, Inc

Multiple Choice

Emma's Clothes, Inc. has accounts receivable of $210,000. In the current economy, she has noticed an increase in uncollectible accounts. In 2018, her sales were $3,380,000 and in 2019, sales were $3,960,000. Before 2019, she estimated that 2% of sales would eventually be uncollectible. In 2019, Emma believes that her losses were closer to 3% in 2018. What should be the bad debt expense for 2018 and 2019 in the comparative income statements for 2018 and 2019?

A) 2018, $101,400; 2019, $118,800
B) 2018, $67,600; 2019, $118,800
C) 2018, $67,600; 2019, $220,200
D) 2018, $101,400; 2019, $220,200