Multiple Choice
Abbott Company uses the allowance method of accounting for uncollectible accounts.Abbott estimates that 3% of net credit sales will be uncollectible.On January 1,the Allowance for Doubtful Accounts had a credit balance of $2,400.During the year,Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000.There were no sales returns or sales discounts during the year.After the adjusting entry,the December 31,balance in the Bad Debt Expense will be
A) $1,200
B) $3,000
C) $3,600
D) $7,200
Correct Answer:
Verified
Correct Answer:
Verified
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