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The Alowance for Bad Debts account has a credit balanco of $3,000 before the adjusting entry for bad debts expense. The company's managernent estimates that

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The Alowance for Bad Debts account has a credit balanco of $3,000 before the adjusting entry for bad debts expense. The company's managernent estimates that 2% of net credit sales will be uncollectible for the year 2025 . Net credit sales for the year amounted to $270,000. What is the amount of Bad Debts Expense reported on the income statement for 2025 ? A. $2,400 B. $5,400 C. $8,400 D. $2,700

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