The following information is from the 2019 records of Uptown Antique Shop:
Bad debts expense is estimated by the percent-of-sales method. Management estimates that 4% of net credit sales will be uncollectible. The ending balance of the Allowance for Bad Debts account after adjustment will be ________.
A) $8700
B) $6780
C) $9780
D) $5700
D) $5700
Explanation: Estimated Bad Debt Expense - Allowance account balance (Debit) = $7200 - $1500 = $5700
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