Answer:
$90,000
Explanation:
Given data
Net credit sales = $6,000,000
The estimated bad debt percentage is 1.50%
Credit balance in allowance for uncollectible accounts = $42,000
Adjusted balance = $40,000
The computation of the bad debt expense is shown below:
= Net credit sales × estimated bad debt percentage
= $6,000,000 × 1.50%
= $90,000
By multiplying the net credit sales with the estimated bad debt percentage we get the bad debt expense and the same is applied in the above calculation
