The Following Information Is from the Records of Armadillo Camera

question 105

Multiple Choice

The following information is from the records of Armadillo Camera Shop: $$\begin{array} { | l | r | } \hline\text { Accounts receivable, December 31, 2014 } & \$ 80,000 \text { (debit) } \\\hline \text { Net credit sales for 2014 } & 165,000 \\\hline \text { Accounts written off as uncollectible during 2014 } & 15,000 \\\hline \text { Cash sales during 2014 } & 40,000 \\\hline\end{array}$$ The company uses the direct write-off method for bad debts. What is the amount of bad debts expense?

• A) $80,000
• B) $40,000
• C) $16,800
• D) $15,000

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