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A Company Uses the Percentage of Credit Sales Method to Estimate

Question 113

Multiple Choice

A company uses the percentage of credit sales method to estimate bad debt expense.At the end of the year,the company's unadjusted trial balance includes the following: A company uses the percentage of credit sales method to estimate bad debt expense.At the end of the year,the company's unadjusted trial balance includes the following: The company estimates,based on historical bad debt losses,that 0.5% of the sales will be uncollectible.What is the bad debt expense to be recorded for the year? A) $4,500 B) $4,300 C) $4,700 D) $45,000 The company estimates,based on historical bad debt losses,that 0.5% of the sales will be uncollectible.What is the bad debt expense to be recorded for the year?


A) $4,500
B) $4,300
C) $4,700
D) $45,000

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