On average,5% of total accounts receivable has been uncollectible in the past.At the end of the year,the balance of accounts receivable is $100,000 and the allowance for doubtful accounts has an unadjusted credit balance of $500.Credit sales during the year were $150,000.Using the aging of accounts receivable method,the estimated bad debt expense would be:
A)$4,500.
B)$5,000.
C)$7,000.
D)$7,500.

Question

Quizplus · Accepted Answer

The aging of accounts receivable method is not provided in the question, so the estimated bad debt expense cannot be calculated.

On Average,5% of Total Accounts Receivable Has Been Uncollectible in the Past.At