Your company uses the percentage of credit sales method for calculating bad debt expense.If your company has $216,000 in total sales,of which $178,000 are on credit,and its historical bad debt loss is 6% of credit sales,bad debt expense:
A) is $12,960.
B) is $10,680.
C) is $38,000.
D) cannot be determined from the information given.
Correct Answer:
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