The Following Information Is from the 2016 Records of Armadillo

question 28

Multiple Choice

The following information is from the 2016 records of Armadillo Camera Shop: $$\begin{array} { | l | r | } \hline \text { Accounts receivable, 31 December 2016 } & \$ 20000 \text { (debit) } \\\hline \text { Net credit sales for 2016 } & 95000 \\\hline \text { Accounts written off as uncollectable during 2016 } & 7000 \\\hline \text { Cash sales during 2016 } & 27000 \\\hline\end{array}$$ Bad debts expense is determined by the direct write-off method.Which of the following will be the amount of Bad debts expense?

• A)$2 250
• B)$2 850
• C)$3 450
• D)$7 000

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