Which One of the Following Calculations Is Correct for the Percentage

question 4

Multiple Choice

Which one of the following calculations is correct for the percentage of credit sales method?

• A) Bad debt expense = Sales x historic %
• B) Bad debt expense = Credit sales x historic %
• C) Bad debt expense x historic % = Allowance for doubtful accounts
• D) Bad debt expense = Accounts receivable x historic %

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