As of December 31, 2017, Gill Co

As of December 31, 2017, Gill Co. reported accounts receivable of $216,000 and an allowance for uncollectible accounts of $8,400. During 2018, accounts receivable increased by $22,000 (that change includes $7,800 of bad debts that were written off) . An analysis of Gill Co.'s December 31, 2018, accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. Bad debt expense for 2018 would be:

A) $6,540.
B) $7,800.
C) $7,140.
D) None of these answer choices are correct.

Correct Answer:

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