A company uses the percent of sales method to estimate bad debts expense. A company expects for 5% of total sales to go unpaid. The balance in the sales account and the allowance for doubtful accounts is equal to $100,000 and $3,000 (credit), respectively. How much in bad debt expense should be recognized as of the end of the year? Oa. a. $2,000 b. $5,000 Oc. $3,000 Od. $8,000

A company uses the percent of sales method to estimate bad debts expense. A company expects for 5% of total sales to go unpaid. The balance in the sales account and the allowance for doubtful accounts is equal to $100,000 and $3,000 (credit), respectively. How much in bad debt expense should be recognized as of the end of the year? Oa. a. $2,000 b. $5,000 Oc. $3,000 Od. $8,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entry for bad debt expenses
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