Cullumber Inc has evaluated its process of calculating estimates of uncollectible accounts receivable. In the...
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Cullumber Inc has evaluated its process of calculating estimates of uncollectible accounts receivable. In the past, Cullumber calculated the Bad Debt Expense as a percentage of sales. It recorded Bad Debt Expense at 1% of sales. Due to changes in the economic conditions, Cullumber will increase that percentage to 3%. The change is made on January 1, 2025. Sales in 2023 were $1530000 and $3030000 in 2024 . Sales in 2025 total $4030000. What is the Bad Debt Expense that Cullumber will record for 2025? $152100 $120900 $211800 $40300
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