The Books of Tweed Company Provided the Following Information: Beginning

Multiple Choice

The books of Tweed Company provided the following information: Beginning balances: Trade receivables $30,000 Allowances for doubtful accounts (a credit) $2, 000 Transactions during the year: Sales revenue (of which 1/3 were on credit) $1,800,000 Collections on trade receivables $590,000 Accounts written off as uncollectible $2,500 Past collection experience has indicated that 1% of credit sales normally is not collected. Therefore, an adjusting entry for bad debt expense should be made in the amount of

A) $500.
B) $2,500.
C) $6,000.
D) $6,500.