Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3%...
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Accounting
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $2,400. During the year, Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be
a.$1,200
b.$7,200
c.$3,600
d. $3,000
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