The following information is from the 2025 records of R​ & S Commercial Plumbing​ Company:   Accounts​ receivable, December​ 31, 2025 $42,000 ​(debit) Allowance for Bad​ Debts, December​ 31, 2025 prior to adjustment 1,500 ​(debit) Net credit sales for 2025 180,000 Accounts written off as uncollectible during 2025 18,000 Cash sales during 2025 28,000   Bad debts expense is estimated by the percent−of−sales method. Management estimates that 4​% of net credit sales will be uncollectible. Calculate the amount of bad debts expense for 2025.         A. $5,520   B. $5,700   C. $7,200   D. $8,320

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A: Accounts receivable turnover tells how many times sales have been converted into cash. More the…

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