Emma's Clothes,Inc

Multiple Choice

Emma's Clothes,Inc.has accounts receivable of $210,000.In the current economy,she has noticed an increase in uncollectible accounts.In 2016,her sales were $3,200,000 and in 2017,sales were $3,800,000.She has estimated in the past that 2% of sales would eventually be uncollectible.Emma believes that her losses were closer to 3% last year.What should be the bad debt expense for 2016 and 2017 in the comparative income statements for 2016 and 2017?

A) 2016,$96,000; 2017,$114,000
B) 2016,$64,000; 2017,$114,000
C) 2016,$64,000; 2017,$146,000
D) 2016,$96,000; 2017,$146,000