Multiple Choice
Over the past five years,a company had average annual credit sales of $320,000 and an average annual net write-offs of $2,000.Credit sales in the current year are $300,000.Using the percentage of credit sales method,what should the company record as an estimate of bad debt expense?
A) $2,000
B) $1,875
C) $20,000
D) $6,000
Correct Answer:
Verified
Correct Answer:
Verified
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