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Please explain Cary Inc. reported net credit sales of $460,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is

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Cary Inc. reported net credit sales of $460,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $900. The company has experienced bad debt losses of 2% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense? $9, 200 $2, 700 $3, 600 $10.100

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