At the Beginning of 2019, Patriots, Inc

question 124

Multiple Choice

At the beginning of 2019, Patriots, Inc. has the following account balances: Accounts Receivable $45,000 (Debit)
Allowance for Bad Debts $8,000 (Credit)
Bad Debts Expense $0
During the year, credit sales amounted to $810,000. Cash collected on credit sales amounted to $770,000, and $18,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 3.5%. The amount of bad debts expense for 2019 is ________.

• A) $28,350
• B) $56,875
• C) $18,000
• D) $18,350

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Definitions:

Adipose

Fat tissue in the body that stores energy and provides insulation and protection for organs.

Fatty Tissue

A body tissue composed of fat cells (adipocytes), which store energy and provide insulation and protection to organs.

Ambilateral

Pertaining to both sides of the body.

Ambi-

A prefix meaning both or on both sides.