Sigma Reports Net Credit Sales of $400,000

Multiple Choice

Sigma reports net credit sales of $400,000.There is a credit balance of $1,000 in the Allowance for Doubtful Accounts.Uncollectible accounts are estimated to be 2.5% of net credit sales.Under the income statement approach,the adjusting entry would require a debit to Bad Debt Expense for:

A) $10,000.
B) $9,000.
C) $ 9,975.
D) some other number.