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Superior Company has provided you with the following information before any year-end adjustments: Net credit sales are $240,000. Historical percentage of credit losses is 2%.

Superior Company has provided you with the following information before any year-end adjustments: Net credit sales are $240,000. Historical percentage of credit losses is 2%. Allowance for doubtful accounts has a credit balance of $600. Accounts receivables ending balance is $94,000. What is the estimated bad debt expense using the PERCENTAGE OF CREDIT SALES METHOD? A. $1,880. B. $5,400. C. $4,800. D. $4,200.

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