Deuce Company Uses the Allowance Method to Estimate Losses from Uncollectible

Deuce Company uses the allowance method to estimate losses from uncollectible receivables. Net sales for the year are $120,000, and the company estimates its bad debts as 1 percent of net sales. If there is already a $1,200 debit balance in Allowance for Bad Debts, how much should be recorded as Bad Debt Expense?

A) $1,200
B) $2,400
C) $24,000
D) No entry is required