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The Following Information Is from the 2016 Records of Armadillo

Question 28

Multiple Choice

The following information is from the 2016 records of Armadillo Camera Shop:  Accounts receivable, 31 December 2016 $20000 (debit)   Net credit sales for 2016 95000 Accounts written off as uncollectable during 2016 7000 Cash sales during 2016 27000\begin{array} { | l | r | } \hline \text { Accounts receivable, 31 December 2016 } & \$ 20000 \text { (debit) } \\\hline \text { Net credit sales for 2016 } & 95000 \\\hline \text { Accounts written off as uncollectable during 2016 } & 7000 \\\hline \text { Cash sales during 2016 } & 27000 \\\hline\end{array} Bad debts expense is determined by the direct write-off method.Which of the following will be the amount of Bad debts expense?


A) $2 250
B) $2 850
C) $3 450
D) $7 000

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