Warren computes bad debts as a percent of accounts receivable. The ADA account has a credit balance of $900. If an aging reveals that bad debts are estimated at $3000, the bad debts adjustment should be in the amount of:
A. $2100
B. $3900
C. $3000
D. None of these
Answer:A
Warren computes bad debts as a percent of accounts receivable. The ADA account has a credit balance of $900. If an aging reveals that bad debts are estimated at $3000, the bad debts adjustment should be in the amount of:
A. $2100 B. $3900 C. $3000 D. None of these