A Company Has a Debit Balance of $3,500 in the Allowance

question 95

Multiple Choice

A company has a debit balance of $3,500 in the Allowance for Doubtful Accounts.It estimates that 2% of net credit sales of $1,500,000 will be uncollectible.The required journal entry to record bad debt expense should include a debit to:

• A)Allowance for Doubtful Accounts for $30,000.
• B)Allowance for Doubtful Accounts for $33,500.
• C)Bad Debt Expense for $33,500.
• D)Bad Debt Expense for $30,000.

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