Markley Company's Total Sales on Account for the Year Amounted

Multiple Choice

Markley Company's total sales on account for the year amounted to $360,000 including cash sales of $60,000. The company estimates that 2% of its total credit sales will be uncollectible. If Markley uses the allowance method of accounting for bad debts expense, the bad debts provided for is equal to:

A) $6,000.
B) $7,200.
C) $1,200.
D) $1,800.