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Pharoah Inc. has evaluated its process of calculating estimates of uncollectible accounts receivable. In the...

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Accounting

Pharoah Inc. has evaluated its process of calculating estimates of uncollectible accounts receivable. In the past, Pharoah 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, Pharoah will increase that percentage to 3%. The change is made on January 1, 2025. Sales in 2023 were $1670000 and $3170000 in 2024. Sales in 2025 total $4170000. What is the Bad Debt Expense that Pharoah will record for 2025?
A.$220200
B.$125100
C.$41700
D. $161900
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Pharoah inc. has evaluated its process of calculating estimates of uncollectible accounts receivable. In the past. Pharoah 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. Pharoah will increase that percentage to 3%. The change is made on January 1,2025. Sales in 2023 were $1670000 and $3170000 in 2024. Sales in 2025 total \$4170000. What is the Bad Debt Expense that Pharoah will record for 2025? $220200 $125100 $41700 $161900

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