Blossom Inc

Multiple Choice

Blossom Inc.has an unadjusted debit balance of $3,500 in its Allowance for Doubtful Accounts.The company has experienced bad debt losses of 2% of credit sales in prior periods.Blossom reported net credit sales of $1,500,000 for the current period.The required journal entry to record Bad Debt Expense should include a debit to:

A) Allowance for Doubtful Accounts for $30,000.
B) Allowance for Doubtful Accounts for $33,500.
C) Bad Debt Expense for $33,500.
D) Bad Debt Expense for $30,000.