Simpson Ltd recorded sales of $180,000 during the year. Of these, $80,000 were on credit. Bad debts have averaged one half of one percent of credit sales. The entry to record bad debts expense for the year would be:

Select one:

a.

Dr Bad debts expense 400

Cr Accounts receivable 400

b.

Dr Bad debts expense 900

Cr Allowance for doubtful debts 900

c.

None of the above

d.

Dr Bad debts expense 900

Cr Accounts receivable 900

e.

Dr Bad debts expense 400

Cr Allowance for doubtful debts 400