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The Following Information Pertains to Lindsey Corp Lindsey Corp

Question 71

Multiple Choice

The following information pertains to Lindsey Corp.at the at the end of the year:
 Credit Sales $150,000 Accounts Payable 20,000 Accounts Receivable 30,000 Allowance for Uncollectible Accounts 800 debit  Cash Sales 5,500\begin{array} { l r } \text { Credit Sales } & \$ 150,000 \\\text { Accounts Payable } & 20,000 \\\text { Accounts Receivable } & 30,000 \\\text { Allowance for Uncollectible Accounts } & 800 \text { debit } \\\text { Cash Sales } & 5,500\end{array}
Lindsey Corp.uses the percentage-of-credit-sales method and estimates that 2% of the credit sales are uncollectible.After the year-end adjustment,what amount of bad debt expense would Lindsey report for the year?


A) $1,200.
B) $2,200.
C) $3,000.
D) $3,800.

Correct Answer:

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