Star Enterprises Uses the Aging of Accounts Receivable Method What Is the Estimate of Bad Debt Expense?
A)$10,000
B)$18,000

Multiple Choice

Star Enterprises uses the aging of accounts receivable method.The following information comes from its accounting records: $\begin{array}{lr}\text { Cash sales } & \$ 100,000 \\\text { Credit sales } & 1,600,000 \\\text { Total sales } & 2,000,000 \\\text { Credit balance in the Allowance for Doubtful Accounts } & 10,000 \\\text { Estimated uncollectible accounts receivables } & 38,000\end{array}$ What is the estimate of bad debt expense?

A) $10,000
B) $18,000
C) $28,000
D) $38,000