Barter Company borrows $20,000 for one year a 9% interest, but must maintain a $1 600 compensating balance. The effective rate of interest on this loan is a. 17.0%. b. 8.0%. c. 9.0%. d. 9.8%. 24 25. Based on its past collection experience, Base Company provides for bad debts at the rate of 2 percent of net credit sales. On January 1, 2014, the allowance for doubtful accounts credit balance was $10,000. During 2014, Base wrote off $18,000 of uncollectible receivables and recovered $5,000 on accounts written off in prior years. If net credit sales for 2014 totaled $1,000,000, the doubtful accounts expense for 2014 should be a. $20,000 b. $23,000. c. $17,000. d. $35,000