Multiple Choice
Marx Company estimates bad debt expense using a percentage of credit sales (4%) .The company began its current year with an $8, 500 balance in the allowance account.During the current year, $10, 500 of accounts receivable were written off, and $1, 200 of previously written off accounts were collected.Credit sales for the year were $200, 000.The bad debt expense for the year was
A) $10, 500
B) $ 7, 200
C) $ 8, 000
D) $ 6, 000
Correct Answer:
Verified
Correct Answer:
Verified
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