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The following information is from the 2020 records of R & S Commercial Plumbing Company:
| Accounts receivable, December 31, 2020 | $42,000 (debit) |
| Allowance for Bad Debts, December 31, 2020 prior to adjustment | 1,300 (debit) |
| Net credit sales for 2020 | 176,000 |
| Accounts written off as uncollectible during 2017 | 18,000 |
| Cash sales during 2020 | 28,000 |
Bad debts expense is estimated by the
percentof-sales method. Management estimates that 3% of net credit sales will be uncollectible. Calculate the amount of bad debts expense for 2020.
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