The following information is from the 2017 records of Armand Music Shop
Accounts receivable, December 31, 2017 $41,000 (debit)
Allowance for Bad Debts, December 31, 2017
prior to adjustment 1,300 (debit)
Net credit sales for 2017 175,000
Accounts written off as uncollectible during 2017 15,000
Cash sales during 2017 30,000
Bad debts expense is estimated by the percent-of-sales method. Management estimates that 6% of net credit sales will be uncollectible. Calculate the amount of bad debts expense for 2017.
A) $10,500
B) $8,040
C) $12,300
D) $9,200
A .Calculations: $175,000 x 0.06 = $10,500
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