Question

Wrangler Inc. uses the percentage of credit sales method to estimate Bad Debt Expense. At the end of the year, the companys unadjusted trial balance includes the following:


Accounts Receivable $349,000
Allowance for Doubtful Accounts (credit balance) 200
Net Credit Sales 900,000

Wrangler has experienced bad debt losses of 0.5% of credit sales in prior periods. What is the Bad Debt Expense to be recorded for the year?

A) $4,500

B) $4,300

C) $4,700

D) $45,000

Answer

This answer is hidden. It contains 212 characters.