The following information concerns Complex, Inc.: Accounts receivable, 12/31/X7 Credit sales during X7 Allowance for doubtful accounts, 12/31/X7 Bad debt expense is determined using the percentage of sales method. The company believes that 4% of sales will never be collected. What would be the balance in allowance for doubtful accounts after the adjusting entry? Select one: $56,000 $189,000 $1,500 credit a. $9,060 O b. $7,560 O c. $1,500 d. $6,060 e. $2,240

The following information concerns Complex, Inc: Bad debt expense is determined using the percentage of sales method. The company believes that 4% of sales will never be collected. What would be the balance in allowance for doubtful accounts after the adjusting entry? Select one: a. $9,060 b. $7,560 c. $1,500 d. $6,060 e. $2,240