Question $19$

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Lowe's Company uses the allowance method for recording its expected credit losses. It estimates bad debts at $2\%$ of credit sales, which were $$990,000$ during the year. On December $31,$ the Accounts Receivable balance was $$165,000,$ and the Allowance for Doubtful Accounts had a credit balance of $$13,420$ before adjustments.

What is the amount of Bad Debt Expense Lowe's Company will report on their Income Statement this year?

Select one:

a$.$ $$3,300$

b$.$ $$19,800$

c$.$ $$19,532$

d$.$ $$3,032$

e$.$ $$13,420$