Question: What is the bad debts expense based on the following information? Assume management calculates bad debts based on 7% of outstanding accounts receivable? Assume the

What is the bad debts expense based on the following information?

What is the bad debts expense based on the following information? Assume management calculates bad debts based on 7% of outstanding accounts receivable? Assume the following at year end: AFDA $3,000 credit balance Sales returns and $25,000 allowances Accounts $140,000 receivable A) $9.800 B) $3,000 C) $4,200 D) $6,800

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