Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 1% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,600. During the year, Abbott wrote off accounts receivable totaling $2,700 and made credit sales of $94,000 After the adjusting entry, the December 31 balance in Bad Debt Expense will be a. $4,540 b. $3,600 c. $1,840 d. $940

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 1% of credit sales will be uncollectible. On Janusry 1 , the Allowance for Doubtful Accounts had a credit batance of $3,500. During the year, Abbott wrole oft accounts recelvable totaling $2,700 and made credit soles of $94,000 After the adjusting entry, the December 31 balance in Bad Debt Expense will be a. 54,540 b. $1,000 e. $1,140 d. 5940