The December 31, the trial balance of ABC company before adjustments included the following accounts: $$\begin{array} { | l | l | l | }
\hline & \text { Debit } & \text { Credit } \
\hline \text { Allowance for doubtrul accounts } & \$ 2,000 & \
\hline \text { Sales } & & \$ 830,000 \
\hline \text { Sales returns and allowances } & 10,000 & \
\hline
\end{array}$$ The company estimates its bad debts based upon 2 percent of net credit sales. What amount should it record as bad debt expense, assuming all sales are credit sales?
A) $14,400
B) $14,600
C) $16,400
D) $16,600

Question

The December 31, the trial balance of ABC company before adjustments included the following accounts: $$\begin{array} { | l | l | l | } 
\hline & \text { Debit } & \text { Credit } \
\hline \text { Allowance for doubtrul accounts } & \$ 2,000 & \
\hline \text { Sales } & & \$ 830,000 \
\hline \text { Sales returns and allowances } & 10,000 & \
\hline
\end{array}$$ The company estimates its bad debts based upon 2 percent of net credit sales. What amount should it record as bad debt expense, assuming all sales are credit sales?
A) $14,400
B) $14,600
C) $16,400
D) $16,600

Quizplus · Accepted Answer

The Answer of The December 31, the trial balance of ABC company before adjustments included the following accounts: $$\begin{array} { | l | l | l | } 
\hline & \text { Debit } & \text { Credit } \
\hline \text { Allowance for doubtrul accounts } & \$ 2,000 & \
\hline \text { Sales } & & \$ 830,000 \
\hline \text { Sales returns and allowances } & 10,000 & \
\hline
\end{array}$$ The company estimates its bad debts based upon 2 percent of net credit sales. What amount should it record as bad debt expense, assuming all sales are credit sales?
A) $14,400
B) $14,600
C) $16,400
D) $16,600

The December 31, the Trial Balance of ABC Company Before