The Data Presented Below Is for Mellon Corporation for the Year

question 130

Multiple Choice

The data presented below is for Mellon Corporation for the year ended December 31, 2016: $\begin{array}{lr}\text { Sales (100\% on credit) } & \$ 1,500,000 \\\text { Sales returns } & 60,000 \\\text { Accounts Receivable (December 31, 2016) } & 250,000 \\\text { Allowance for Doubtful Accounts [Credit B al ance] (Before adjustment at December } & \\31,2016 &3,000 \\\text { Estimated amount of uncollectible accounts based on an aging analysis }&31,000\\\end{array}$
-Refer to the data for Mellon Corporation. ?
If Mellon estimates its bad debts at 2% of net credit sales, what amount will be reported as bad debt expense for 2016?

• A) $25,800
• B) $27,000
• C) $28,800
• D) $30,000

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Individuals who provide services to a company or another individual under terms specified in a contract, but who are not considered employees of the company.

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