Gross Accounts Receivable is $20,000.Allowance for Doubtful Accounts has a credit balance of $400.Net credit sales for the year are $125,000.In the past,2% of credit sales had proved uncollectible,and an aging of the receivables indicates $1,500 is doubtful.Under the balance sheet approach,Bad Debts Expense for the year is:
A)$1,900.
B)$2,900.
C)$2,500.
D)$1,100.

Question

Quizplus · Accepted Answer

The Answer of Gross Accounts Receivable is $20,000.Allowance for Doubtful Accounts has a credit balance of $400.Net credit sales for the year are $125,000.In the past,2% of credit sales had proved uncollectible,and an aging of the receivables indicates $1,500 is doubtful.Under the balance sheet approach,Bad Debts Expense for the year is:
A)$1,900.
B)$2,900.
C)$2,500.
D)$1,100.

Gross Accounts Receivable Is $20,000