#83 A company used 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

Accounts receivable

Allowance for uncollectible accounts

Net Sales

$245,000 debit

300 credit

900,000 credit

All sales are made on credit. Based on past experience, the company estimates 0.5% of credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?

A. $925

B. $1,225

C. $4,200

D. $4,500

E. $45,000

\#83 A company used 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 All sales are made on credit. Based on past experience, the company estimates 0.5% of credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? A. $925 B. $1,225 C. $4,200 D. $4,500 E. $45,000