9) Maxwell Dog Emporium had total sales of $1,000,000 during 2020 of which $100,000 were cash sales. At December 31, 2020 the balance in Accounts Receivable was $90,000 and the Allowance for Uncollectible Accounts had a $500 credit balance. Assume that Maxwell uses the Allowance method of accounting for bad debts and estimates that bad debts will total 5% of accounts receivable. What amount of Bad Debt Expense will Maxwell report for 2020? A) $4,000 B) $4,500 C) $2,700 D) $2,200 = 4500

9) Maxwell Dog Emporium had total sales of $1,000,000 during 2020 of which $100,000 were cash sales. At December 31, 2020 the balance in Accounts Receivable was $90,000 and the Allowance for Uncollectible Accounts had a $500 credit balance. Assume that Maxwell uses the Allowance method of accounting for bad debts and estimates that bad debts will total 5% of accounts receivable. What amount of Bad Debt Expense will Maxwell report for 2020? A) $4,000 B) $4,500 C) $2,700 D) $2,200