Superior Company Has Provided You with the Following Information Before

Multiple Choice

Superior Company has provided you with the following information before any year-end adjustments: Net credit sales are $120,000.
Historical percentage of credit losses is 2%.
Allowance for doubtful accounts has a credit balance of $300.
Accounts receivables ending balance is $47,000.
What is the estimated bad debt expense using the percentage of credit sales method?

A) $2,100.
B) $2,400.
C) $940.
D) $2,700.