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For 2024, Mohammads Auto Parts estimates bad debt expense at 3% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts
For 2024, Mohammads Auto Parts estimates bad debt expense at 3% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $95,000 and $3,800, respectively, at December 31, 2023. During 2024, Mohammads credit sales and collections were $421,000 and $425,000, respectively, and $4,040 in accounts receivable were written off.
Mohammads 2024 bad debt expense is:
A.) $498,000
B.) $528,000
C.) $516,000
D.) $558,000
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