KayCo began business January 1,2012.During 2012,sales were $650,000.The year-end accounts receivable balance was $104,000.The company estimates that 10% of accounts receivable will be uncollectible.The financial statements for the year ended December 31,2012 will show ________.
A) bad debts expense of $10,400 on the income statement
B) bad debts expense of $9,750 on the income statement
C) net accounts receivable of $94,250 on the balance sheet
D) bad debts expense of $10,400 on the balance sheet
Correct Answer:
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