The following information pertains to Lindsey Corp. at the end of the year:
Credit Sales $ 150,000
Accounts Payable 20,000
Accounts Receivable 30,000
Allowance for Uncollectible Accounts 800 debit
Cash Sales 5,500
Lindsey Corp. uses the percentage-of-credit-sales method and estimates that 2% of the credit sales are uncollectible. After the year-end adjustment, what amount of bad debt expense would Lindsey report for the year?
A) $1,200.
B) $2,200.
C) $3,000.
D) $3,800.
Answer: $3,000.
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