On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debts included the following: sales of $571,500, accounts receivable had a debit balance of $95,250, allowance for doubtful accounts has a credit balance of $921. What amount should be debited to bad debts expense, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible?
A. $5,715
B. $6,636
C. $4,794
D. $5,770
Answer: C. $4,794
Business
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