The Following Information Pertains to Lindsey Corp Lindsey Corp

question 125

Multiple Choice

The following information pertains to Lindsey Corp.at the at the end of the year:
$$\begin{array} { l r } \text { Credit Sales } & \$ 150,000 \\\text { Accounts Payable } & 20,000 \\\text { Accounts Receivable } & 30,000 \\\text { Allowance for Uncollectible Accounts } & 800 \text { debit } \\\text { Cash Sales } & 5,500\end{array}$$
Lindsey Corp.uses the percentage-of-credit-sales method and estimates that 2% of the credit sales are uncollectible.After the year-end adjustment,what amount of bad debt expense would Lindsey report for the year?

• A)$1,200.
• B)$2,200.
• C)$3,000.
• D)$3,800.

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