Multiple Choice
The current credit balance in allowance for doubtful accounts is $1,150. Management estimates that 2% of net credit sales of $100,000 will be uncollectible. Based on the foregoing data, what is the bad-debt expense balance on the income statement?
A) $2,000
B) $850
C) $3,150
D) $2,850
Correct Answer:
Verified
Correct Answer:
Verified
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