Marston Company has outstanding accounts receivable totaling €1.5 million as of December 31 and sales on credit during the year of €24 million. There is also a credit balance of €2,000 in the allowance for doubtful accounts as of December 31. After aging its receivables, the company estimates that 8% of its total outstanding receivables will be uncollectible. What will be the amount of bad debt expense recognized for the year?
A) €2,000
B) €120,000
C) €122,000
D) €118,000

Question

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The Answer of Marston Company has outstanding accounts receivable totaling €1.5 million as of December 31 and sales on credit during the year of €24 million. There is also a credit balance of €2,000 in the allowance for doubtful accounts as of December 31. After aging its receivables, the company estimates that 8% of its total outstanding receivables will be uncollectible. What will be the amount of bad debt expense recognized for the year?
A) €2,000
B) €120,000
C) €122,000
D) €118,000

Marston Company Has Outstanding Accounts Receivable Totaling €1