Question
The following information is from the 2025 records of R& S Commercial PlumbingCompany: Accountsreceivable, December31, 2025 $40,000(debit) Allowance for BadDebts, December31, 2025 prior to adjustment
The following information is from the 2025 records of R& S Commercial PlumbingCompany:
Accountsreceivable, December31, 2025
$40,000(debit)
Allowance for BadDebts, December31, 2025 prior to adjustment
1,400(debit)
Net credit sales for 2025
176,000
Accounts written off as uncollectible during 2025
14,000
Cash sales during 2025
25,000
Bad debts expense is estimated by the percentofsales method. Management estimates that 6% of net credit sales will be uncollectible. Calculate the amount of bad debts expense for 2025.
A.
$10,560
B.
$8,160
C.
$12,060
D.
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Accounting Information Systems
Authors: Marshall RomneyPaul Steinbart
11th Edition
136015182, 978-0136015185
