Multiple Choice
On average,5% of credit sales has been uncollectible in the past.At the end of the year,the balance of accounts receivable is $100,000 and the allowance for doubtful accounts has an unadjusted credit balance of $500.Net credit sales during the year were $150,000.Using the percentage of credit sales method,the estimated bad debt expense would be:
A) $5,000.
B) $7,000.
C) $7,500.
D) $8,000
Correct Answer:
Verified
Correct Answer:
Verified
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