Allowance for Bad Debts Account Assignment

The Allowance for Bad Debts account has a credit balance of $3,000 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 $290,000. What is the amount of Bad Debts Expense reported on the income statement for 2017? A) $14,500 B) $17,500 C) $7,250 D) $11,500

14) The Allowance for Bad Debts has a credit balance of $7,500 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging- of- receivables method, the company's management estimates that uncollectible accounts will be $17,000. What will be the amount of Bad Debts Expense reported on the income statement? A) $24,500 B) $9,500 c) $17,000 D) $7,500. Get Accounting homework help today