Net Accounts Receivable: Percentage of Sales Method

7. Receivables and Investments / Net Accounts Receivable: Percentage of Sales Method / Problem 5

Problem 5

If a company has credit sales of \$2,000,000 and estimates 4% to be uncollectible, what is the bad debt expense?

\$8,000

\$80,000

\$20,000

\$200,000