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Abbott Company uses the allowance method of accounting for uncollectible receivables. Abbott estimates that 4% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $3,800. During the year, Abbott wrote off accounts receivable totaling $2,100 and made credit sales of $103,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be a. $5,820 b. $1,900 c. $7,920 d. $4,120

Aboott Company uses the allowance method of accounting for uncollectible recelvables. Abbott estimates that 4% of credit sales will be uncollectible, On tanusy'3, Allowance for Doubtfut Accounts had a credit bafance of $3,800. During the year, Abbott wrote off sccounts recelvable totaling $2,100 and made credit sales of $103,000. There were no sales returns during the year. After the adjusting entry, the December 31 batance in Bad Debt Expense will be A. $3,820 k. 31,900 c. $7.920 4. 54,120