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What is correct amount of a company bad debt expense

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Reference no: EM132596229

Question - Consider the following information regarding the company's history:

Accounts Receivables total $950,000

Estimates show that 4% of its receivables will be uncollectible

No balance in the Allowance account

Using the allowance method, what is the correct amount of a company's bad debt expense for the year, given the above information?

a. $42,750

b. $36,480

c. $39,520

d. $38,000

Reference no: EM132596229

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