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CraneShop had a balance in the Accounts Receivable account of $60,000 at the beginning of the year. Historically the company writes off to bad debt

CraneShop had a balance in the Accounts Receivable account of $60,000 at the beginning of the year. Historically the company writes off to bad debt expense 2% of the Accounts Receivable balance. What is the balance of the Bad Debt Allowance account at the beginning of the year?

  • A. $1200

  • B. $2400

  • C. $0

  • D. $600

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