A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable$384,000?debitAllowance for uncollectible accounts 590?creditNet Sales 890,000?creditAll sales are made on credit. Based on past experience, the company estimates that 0.4% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
A. $1012
B. $4252
C. $3560
D. $3072
E. $1602
Answer: C
Business
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