Flyer Company has provided the following information prior to any year-end bad debt adjustment:Cash sales, $151,000 Credit sales, $451,000 Selling and administrative expenses, $111,000 Sales returns and allowances, $31,000 Gross profit, $491,000 Accounts receivable, $120,000 Sales discounts, $15,000 Allowance for doubtful accounts credit balance, $1300 Flyer estimates bad debt expense assuming that 2.0% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?
A. $7720.
B. $10,740.
C. $10,320.
D. $9020.
Answer: C
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Fill in the blank(s) with the appropriate word(s).