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ABC Company begins a new accounting period each month. ABC Company began operations January...

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Accounting

ABC Company begins a new accounting period each month.
ABC Company began operations January 1, Year 1. In January, ABC Company had $10,000 cash sales, $15,000 sales on account and collected $3,000 on account.
During February, ABC Company had $25,000 cash sales, $32,000 sales on account and collected $21,000 on account.
ABC Company estimates delinquent accounts using the Percent of Receivables method. ABC Company estimates Bad Debt Expense to be 10%
What is ABC Company's Bad Debt Expense for February? *

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