On December 31, Asheville Company has a $330,000 debit balance in accounts receivable. The allowance for doubtful accounts has a $4,500 credit balance. Net credit sales for the period total $1,500,000. Asheville estimates 2% of its net credit sales may be uncollectible, and from experience, Asheville determines that the allowance for doubtful accounts should be 10% of accounts receivable.

Referring to Table 9-4, under the percent-of-accounts-receivable method, the bad-debt expense for the period would be: Question 3 options:

$33,000.

$28,500.

$37,500.

$30,000.