The Allowance for Bad Debts account has a credit balance of $4,000 before the adjusting entry for bad debts expense
The company's management estimates that 4% of net credit sales will be uncollectible for the year 2017. Net credit sales for the year amounted to $250,000. What will be the balance of Allowance for Bad Debts on the December 31, 2017 balance sheet?
A) $10,000
B) $4,000
C) $14,000
D) $9,840
C .Beginning balance of the Allowance for Bad Debts (Credit) + Adjusting entry = $4,000 + $10,000
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