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Abbott Company uses the allowance method of accounting for uncollectible receivables. Abbott estimates that 4% of credit sales will be uncollectible. On January 1, Allowance
Abbott Company uses the allowance method of accounting for uncollectible receivables. Abbott estimates that 4% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $3,700. During the year, Abbott wrote off accounts receivable totaling $2,100 and made credit sales of $102,000. After the adjusting entry, the December 31 balance in Bad Debt Expense will be
a.$4,080
b.$7,780
c.$5,680
d.$3,700
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