Gross Accounts Receivable is $23,000. Allowance for Doubtful Accounts has a credit balance of $500. Net credit sales for the year are $140,000. In the past, 3% of credit sales had proved uncollectible, and an aging of the receivables indicates $1,700 is doubtful. Under the income statement approach, Bad Debts Expense for the year is:
A) $2,200.
B) $4,700.
C) $4,200.
D) $1,200.

Question

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The Answer of Gross Accounts Receivable is $23,000. Allowance for Doubtful Accounts has a credit balance of $500. Net credit sales for the year are $140,000. In the past, 3% of credit sales had proved uncollectible, and an aging of the receivables indicates $1,700 is doubtful. Under the income statement approach, Bad Debts Expense for the year is:
A) $2,200.
B) $4,700.
C) $4,200.
D) $1,200.

Gross Accounts Receivable Is $23,000