Your Company Has Averaged About 26% of Its Accounts Receivable

Multiple Choice

Your company has averaged about 26% of its accounts receivable in the "over 90 days past due" category and now forecasts 18% in this category.You use the aging of accounts receivable method of estimating bad debt expense.If the total of credit sales remains unchanged from previous months and no write offs are made,the estimate of bad expense based on the new forecast will:

A) increase over the estimate for previous months.
B) decrease over the estimate for previous months.
C) not change.
D) will depend on the percentage of credit sales deemed un-collectible.