Item$8$

Time Remaining $1$ hour $29$ minutes $50$ seconds

$01$:$29$:$50$

Item $8$

Time Remaining $1$ hour $29$ minutes $50$ seconds

$01$:$29$:$50$

Alderwood Company has provided the following information prior to any year$-$end bad debt adjustment:

Cash sales, $$470,000$

Credit sales, $$1,410,000$

Selling and administrative expenses, $$390,000$

Sales returns and allowances, $$150,000$

Gross profit, $$1,530,000$

Accounts receivable, $$390,000$

Sales discounts, $$102,000$

Allowance for doubtful accounts credit balance, $$4,400$

Alderwood estimates bad debt expense assuming that $1\mathrm{.}5\%$ of credit sales have historically been uncollectible. How much is Alderwood's bad debt expense?

Multiple Choice

$$21,150.$

$$16,750.$

$$25,100.$

$$25,550.$