Generally accepted accounting principles require that interest expense be measured using the effective-interest amortization method, unless the straight-line amounts are similar

A company that uses the perpetual inventory system sold goods to a customer on account for $2,100. The cost of the goods sold was $1,050. Which of the following journal entries correctly records this transaction?

A) Cost of Goods Sold 2,100 Sales Revenue 2,100 B) Merchandise Inventory 2,100 Costs of Goods Sold 2,100 C) Accounts Receivable 2,100 Cash 2,100 Costs of Goods Sold 1,050 Merchandise Inventory 1,050 D) Accounts Receivable 2,100 Sales Revenue 2,100 Costs of Goods Sold 1,050 Merchandise Inventory 1,050

On January 1, Davidson Services has the following balances

Accounts Receivable $23,000 Bad Debts Expense $0 Davidson has the following transactions during January: Credit sales of $120,000, collections of credit sales of $84,000, and write-offs of $18,000. Davidson uses the direct write-off method. The amount of Bad Debts Expense for January is ________. A) $23,000 B) $25,714 C) $12,600 D) $18,000