a-company-uses-the-percentage-of-sales-method-and-estimates-3-of-its-400000-cred

Question

A company uses the percentage of sales method and estimates 3% of its $400,000 credit sales will be uncollectible. What is the bad debt expense?

Accepted Answer

$12,000

Answer

$1,200

Answer

$40,000

Answer

$120,000

A company uses the percentage of sales method and estimates 3% of its \$400,000 credit sales will be uncollectible. What is the bad debt expense?