The Allowance for Bad Debts account has a credit balance of $4000 before the adjusting entry for bad debts expense. The company's management estimates that 5% of net credit sales will be uncollectible for the year 2019. Net credit sales for the year amounted to $280,000. What is the amount of Bad Debts Expense reported on the income statement for 2019?
A) $14,000
B) $18,000
C) $7000
D) $10,000
A) $14,000
You might also like to view...
A ________ is a growth opportunity directed toward existing customers using the retailer's present retailing format.
A. retail format development growth opportunity B. market expansion growth opportunity C. wholesale format development growth opportunity D. market penetration growth opportunity E. diversification growth opportunity
Rotation does not affect the communalities and the percentage of total variance explained
Indicate whether the statement is true or false
What are the organizational benefits of implementing the inclusive workplace at level II of the model?
a. elimination of age discrimination b. advantages in recruitment and in labor disputes c. improved services to the community d. mentorship
Which of the following statements about portfolio income from investments that are not held in a tax-deferred account, is accurate?
A) It is also called investment income. B) It is normally in the form of dividends and interest. C) It must be reported on your tax return. D) It may be taxed at a lower rate than wages and salaries are. E) All of the above