Wasco Company has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $104,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $700. Net credit sales during the year were $158,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year?

A. $8,700.

B. $9,200

C. $5,600.

D. $8,200.

Answer rating: 100% (QA)

Answer Using the percenta... View the full answer