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Use the following information to answer the next two questions: Lewis Company uses the allowance method for recording its expected credit losses. It estimates bad

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Use the following information to answer the next two questions: Lewis Company uses the allowance method for recording its expected credit losses. It estimates bad debts at 2% of credit sales, which were $900,000 during the year. On December 31, the Accounts Receivable balance was $150,000, and the Allowance for Doubtful Accounts had a balance of $12,200 before adjustments. What is the amount of bad debt expense Lewis Company will report on their Income Statement this year? Select one: a. 12,200 b.2.756 C. 3,000 d. 18,000 e. 17,756

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