Phantom Inc

question 100

Multiple Choice

Phantom Inc.has an unadjusted debit balance of $5,250 in its Allowance for Doubtful Accounts.The company has experienced bad debt losses of 2% of credit sales in prior periods.Phantom reported net credit sales of $2,250,000 for the current period.To record the potential bad debts,Phantom would debit:

• A)Allowance for Doubtful Accounts for $45,000.
• B)Allowance for Doubtful Accounts for $50,250.
• C)Bad Debt Expense for $50,250.
• D)Bad Debt Expense for $45,000.

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