The following information is from the 2016 records of Armand Camera Shop: $\begin{array}{|l|l|}
\hline\text { Accounts receivable, } 31 \text { December } 2016 & \$ 45,000 \text { (debit) } \
\hline \text { Allowance for doubtful debts, 31 December 2016 } & \
\text { prior to adjustment } & 1500 \text { (debit) } \
\hline \text { Net credit sales for 2016 } & 178,000 \
\hline \text { Accounts written off as uncollectable during 2016 } & 16,000 \
\hline \text { Cash sales during 2016 } & 30,000\\hline
\end{array}$ Bad debts expense is estimated by the percentage of sales method.The management estimates that 4% of net credit sales will be uncollectable.Calculate the amount of bad debts expense for 2016.
A)$5320
B)$7120
C)$5620
D)$8320

Question

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The Answer of The following information is from the 2016 records of Armand Camera Shop: $\begin{array}{|l|l|}
\hline\text { Accounts receivable, } 31 \text { December } 2016 & \$ 45,000 \text { (debit) } \
\hline \text { Allowance for doubtful debts, 31 December 2016 } & \
\text { prior to adjustment } & 1500 \text { (debit) } \
\hline \text { Net credit sales for 2016 } & 178,000 \
\hline \text { Accounts written off as uncollectable during 2016 } & 16,000 \
\hline \text { Cash sales during 2016 } & 30,000\\hline
\end{array}$ Bad debts expense is estimated by the percentage of sales method.The management estimates that 4% of net credit sales will be uncollectable.Calculate the amount of bad debts expense for 2016.
A)$5320
B)$7120
C)$5620
D)$8320

The Following Information Is from the 2016 Records of Armand