For 2018, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $86,500 and $2,100, respectively, at December 31, 2017. During 2018, Rahal's credit sales and collections were $404,000 and $408,000, respectively, and $2,340 in accounts receivable were written off.
- Rahal's 2018 bad debt expense is:

Question

Quizplus · Accepted Answer

The correct answer is: $\begin{array}{lr}
\text { Credit sales }&\$404,000\&\times 1.0\%\\text { Expense }&\$4,040
\end{array}$

For 2018, Rahal's Auto Parts Estimates Bad Debt Expense at 1