Multiple Choice
The Allowance for Bad Debts account has a credit balance of $2,000. The company's management estimates that 2% of net credit sales will be uncollectible for the year 2015. Net credit sales for the year amounted to $250,000. What will be the amount of Bad Debts Expense reported on the income statement for 2015?
A) $5,000
B) $3,075
C) $2,875
D) $2,675
Correct Answer:
Verified
Correct Answer:
Verified
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