Cary IncReported Net Credit Sales of $300,000 for the Current Year

Multiple Choice

Cary Inc.reported net credit sales of $300,000 for the current year.The unadjusted credit balance in its Allowance for Doubtful Accounts is $500.The company has experienced bad debt losses of 1% of credit sales in prior periods.Using the percentage of credit sales method,what amount should the company record as an estimate of Bad Debt Expense?

A) $2,500
B) $3,000
C) $2,980
D) $3,200