The Following Information Is from the 2015 Records of Armand

question 79

Multiple Choice

The following information is from the 2015 records of Armand Camera Shop: $$\begin{array} { | l | r | } \hline \text { Accounts Receivable, December 31,2015 } & \$ 40,000 \text { (debit) } \\\hline \begin{array} { l } \text { Allowance for Bad Debts, December 31,2015 } \\\text { prior to adjustment }\end{array} & 1,500 \text { (debit) } \\\hline \text { Net credit sales for 2015 } & 175,000 \\\hline \text { Accounts written off as uncollectible during 2015 } & 15,000 \\\hline \text { Cash sales during 2015 } & 27,000 \\\hline\end{array}$$ Bad debts expense is estimated by the percent-of-sales method. The management estimates that 3% of net credit sales will be uncollectible. Calculate the amount of bad debts expense for 2015.

• A) $5,250
• B) $3,450
• C) $2,250
• D) $2,850

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Definitions:

Global Competition

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SMART Goals

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