Kelton Inc

question 12

Multiple Choice

Kelton Inc.reported net credit sales of $450,000 for the current year.The unadjusted credit balance in its Allowance for Doubtful Accounts is $750.The company has experienced bad debt losses of 1% of credit sales in prior periods.Using the percentage of credit sales method,what amount should the company record as an estimate of Bad Debt Expense?

• A)$3,750
• B)$4,500
• C)$4,470
• D)$4,800