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ABC Inc reported net credit sales of $390,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $725. The

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ABC Inc reported net credit sales of $390,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $725. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense? 52900 $3900 $2175 5402

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