Question

Gross Accounts Receivable is $10,000. Allowance for Doubtful Accounts has a credit balance of $200. Net sales for the year are $150,000. In the past, 2% of sales had proved uncollectible, and an aging of the receivables indicates $1,200 is doubtful. Under the income statement approach, the Bad-Debts Expense for the year is

Answer 1

The answer, I believe, is 300 dollars. 150,000 times .02 equals 300. Forgive me if I'm wrong, but I believe this is the answer.