Sigma Reports Net Credit Sales of $400,000

question 96

Multiple Choice

Sigma reports net credit sales of $400,000.There is a credit balance of $1,000 in the Allowance for Doubtful Accounts.Uncollectible accounts are estimated to be 2.5% of net credit sales.Under the income statement approach,the adjusting entry would require a debit to Bad Debt Expense for:

• A)$9,000.
• B)$10,000.
• C)$9,975.
• D)some other number.

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