Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had...

Extracted text: Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,200. During the year, Abbott wrote off accounts receivable totaling $2,300 and made credit sales of $96,000. After the adjusting entry, the December 31 balance in Bad Debt Expense will be Oa. $5,120 Ob. $1,920 Oc. $3,200 Od. $2,820 Previous Next