Question

Jensen Company uses the percentage of credit sales method for calculating Bad Debt Expense. The company reported $216,000 in total sales during the year; $178,000 of which were on credit. Jensen has experienced bad debt losses of 6% of credit sales in prior periods. What is the estimated amount of Bad Debt Expense for the year?

A) $12,960

B) $10,680

C) $38,000

D) $11,000

Answer

This answer is hidden. It contains 212 characters.