Based on Its Past Collection Experience,Base Company Provides for Bad

question 31

Multiple Choice

Based on its past collection experience,Base Company provides for bad debts at the rate of 2 percent of net credit sales.On January 1,2014,the allowance for doubtful accounts credit balance was $10,000.During 2014,Base wrote off $18,000 of uncollectible receivables and recovered $5,000 on accounts written off in prior years.If net credit sales for 2014 totaled $1,000,000,the doubtful accounts expense for 2014 should be

• A) $17,000.
• B) $20,000.
• C) $23,000.
• D) $35,000.

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