QUESTION 38

1. Newbold uses the allowance method for bad debts.

   During 2018, $80,000 in credit sales occurred.

   At the end of 2018, account balances were: Accounts receivable, $12,000; Allowance for uncollectible accounts, $300 (credit).

   Bad debt expense is estimated to be 3% of credit sales, The adjusting journal entry will include a debit to bad debt expense of:

   	A.	$2,700.
   	B.	Zero.
   	C.	$2,100.
   	D.	$2,400.