On Average,5% of Credit Sales Has Been Uncollectible in the Past.At

question 93

Multiple Choice

On average,5% of credit sales has been uncollectible in the past.At the end of the year,the balance of accounts receivable is $100,000 and the allowance for doubtful accounts has an unadjusted credit balance of $500.Net credit sales during the year were $150,000.Using the percentage of credit sales method,the estimated bad debt expense would be:

• A)$5,000.
• B)$7,000.
• C)$7,500.
• D)$8,000