The Allowance for Bad Debts account has a credit balance of $5,000 before the adjusting entry for bad debts expense
The company's management estimates that 5% of net credit sales will be uncollectible for the year 2017. Net credit sales for the year amounted to $280,000. What is the amount of Bad Debts Expense reported on the income statement for 2017?
A) $14,000
B) $19,000
C) $7,000
D) $9,000
A .$280,000 x 0.05 = $14,000
Business
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