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TB MC Qu.07-105(Algo) A company uses the percent of sales method to determine... A...

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Accounting

TB MC Qu.07-105(Algo) A company uses the percent of sales method to determine...
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:
\table[[Accounts Receivable ,$385,000 debit,],[Net Sales,900,000 credit]]
All sales are made on credit. Based on past experience, the company estimates that 0.4% of net sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
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