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Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $157,000 Credit sales, $457,000 Selling and administrative expenses, $117,000

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Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $157,000 Credit sales, $457,000 Selling and administrative expenses, $117,000 Sales returns and allowances, $37,000 Gross profit, $497,000 Accounts receivable, $175,000 Sales discounts, $21,000 Allowance for doubtful accounts credit balance. Flyer estimates bad debt expense assuming that 2.5% of credit sales have historically been uncollectible. How much is Flyer's bad debt expense? $11, 425. $13,450. $13,325. $9,925

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