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Sandhill Inc. has evaluated its process of calculating estimates of uncollectible accounts receivable. In the past, Sandhill calculated the Bad Debt Expense as a percentage
Sandhill Inc. has evaluated its process of calculating estimates of uncollectible accounts receivable. In the past, Sandhill calculated the Bad Debt Expense as a percentage of sales. It recorded Bad Debt Expense at 1% of sales. Due to changes in the economic conditions, Sandhill will increase that percentage to 3%. The change is made on January 1, 2025. Sales in 2023 were $1710000 and $3210000 in 2024. Sales in 2025 total $4210000. What is the Bad Debt Expense that Sandhill will record for 2025? a. $42100 b. $222600 c. $126300 d. $164700
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