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: Accounts...

Extracted text: 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: Accounts receivable $375,000 debit Allowance for uncollectible accounts 500 debit Net Sales 800,000 credit All sales are made on credit. Based on past experience, the company estimates 0.6% of net credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?


Extracted text: Multiple Choice Debit Bad Debts Expense $2,130; credit Allowance for Doubtful Accounts $2,130. Debit Bad Debts Expense $2,630; credit Allowance for Doubtful ACcounts $2,630. Debit Bad Debts Expense $4,300; credit Allowance for Doubtful Accounts $4,300. Debit Bad Debts Expense $4,800; credit Allowance for Doubtful Accounts $4,800. Debit Bad Debts Expense $5,300, credit Allowance for Doubtful Accounts $5,300.