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2)

Over the past five years, a company had average annual credit sales of $320,000 and an average annual net write-offs of $2,000. Credit sales in the current year are $300,000. Using the percentage of credit sales method, what should the company record as an estimate of bad debt expense? O $6,000 O $1,875 O $20,000 None of the above O $2.000 Choose the term that best matches the following description: Bases bad debt expense on the historical perspective of credit sales that result in bad debts Allowance Method Percentage of Credit Sales Method Bad debt Expense None of the other alternatives are correct Sales Returns and Allowances