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A company uses the percent of sales method to determine its bad debts expense. At...

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Accounting

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A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net Sales $ 35,000 debit 500 credit 180,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? Multiple Choice $1,275 O O O $1,775 O $1,500 O $1.080 O $2,500

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