Sanchez Inc. sells to customers only on credit. For the year ended December 31, 2010, the following information is provided:
If Sanchez estimates bad debts at 5% of net credit sales, how much is bad debt expense?
a. $34,000
b. $15,200
c. $23,400
d. $42,150

Question

Sanchez Inc. sells to customers only on credit. For the year ended December 31, 2010, the following information is provided:
  If Sanchez estimates bad debts at 5% of net credit sales, how much is bad debt expense? 
a. $34,000
b. $15,200
c. $23,400
d. $42,150

Quizplus · Accepted Answer

The Answer of Sanchez Inc. sells to customers only on credit. For the year ended December 31, 2010, the following information is provided:
  If Sanchez estimates bad debts at 5% of net credit sales, how much is bad debt expense? 
a. $34,000
b. $15,200
c. $23,400
d. $42,150