Net Accounts Receivable: Percentage of Sales Method

7. Receivables and Investments / Net Accounts Receivable: Percentage of Sales Method / Problem 9

Problem 9

Calculate the bad debt expense using the income statement approach for credit sales of \$3,000,000 with an uncollectible rate of 2%.

\$600,000

\$60,000

\$30,000

\$6,000