Answer: C.$33,000
Explanation:
Calculation of Bad debt expense is 2% on credit sales
Credit sales= 1,500,000
Bad Debts expense= 1500000 x 2/100
= $30000
Calculation of closing balance of allowance
Opening balance of allowance 12000
Less: written off bad debts 9000
Closing balance of allowance $3000
Calculation of allowance for doubtful accounts balance
Allowance of doubtful accounts= Doubtful accounts for the year 2013+ bad debt expense
= 3000+30000
=$33,000
