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San Mateo Company had the following account balances at December 31, 2018, before recording bad debt expense for the year: Accounts receivable $ 1,400,000 Allowance
San Mateo Company had the following account balances at December 31, 2018, before recording bad debt expense for the year: Accounts receivable $ 1,400,000 Allowance for uncollectible accounts (credit balance) 22,000 Credit sales for 2018 1,950,000 San Mateo is considering the following approaches for estimating bad debts for 2018: Based on 3% of credit sales Based on 6% of year-end accounts receivable What amount should San Mateo charge to bad debt expense at the end of 2018 under each method? Percentage of credit sales Percentage of accounts receivable A S 36,500 S 62.000 B S 58,500 $ 62.000 s 58,500 S 84,000 D S 117,000 $ 95,000 . Option A Option B Optionc Option D
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