Creek Co. uses the percentage of credit sales method in determining its bad debt expense. The following information comes from the accounting records of Creek Co.: ??Cash sales$290,000? ??Credit sales 710,000? ??Total sales 1,000,000? ??Credit balance in the Allowance for Doubtful Accounts 8000? ??Bad debt loss rate 3% ??What is the estimate of bad debt expense?
A. $29,300
B. $30,000
C. $21,300
D. $22,000
Answer: C
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