The Following Information Is from the 2017 Records of Armand

question 28

Multiple Choice

The following information is from the 2017 records of Armand Music Shop: $\begin{array}{|l|r|}\hline \text { Accounts receivable, December 31, 2017 } & \$ 41,000 \text { (debit) } \\\hline \begin{array}{l}\text { Allowance for Bad Debts, December 31,2017 } \\\text { prior to adjustment }\end{array} & 1,300 \text { (debit) } \\\hline \text { Net credit sales for 2017 } & 175,000 \\\hline \text { Accounts written off as uncollectible during } & \\\hline 2017 & 15,000 \\\hline \text { Cash sales during 2017 } & 30,000 \\\hline\end{array}$ Bad debts expense is estimated by the percent-of-sales method.Management estimates that 6% of net credit sales will be uncollectible.Calculate the amount of bad debts expense for 2017.

• A)$10,500
• B)$8,040
• C)$12,300
• D)$9,200

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