The following is a partial trial balance for Dewey, Cheatem & Howe, Inc., which uses the percent of
sales method for estimating bad debt expense. History shows that 5% of sales will be uncollectible.
What is the amount of bad debt expense for the period? Highlight in Yellow, the correct multiple choice answer.
Accounts Receivable				150,000
Allowance for Doubtful Accounts				0
Sales				260,000
A.	2,375
B.	13,000
C.	7,500
D.	925