Question: Oddessy consulting has the following for year ended 12-31-09 before adjustments.

Accounts receivable

$330,000

Net Credit Sales

$1,200,000

Allowance for doubtful accounts

$4,700 credit balance

Estimated percentage of Bad debts on credit sales

2%

Oddessy uses the net credit sales method of estimating bad debt expense. The journal entry for estimating bad debt expense at year end is:

A) Allowance for doubtful accounts 24,000
Accounts Receivable 24,000

B) Allowance for doubtful accounts 28,700
Bad Debts Expense 28,700

C) Bad Debts Expense 28,700
Allowance for doubtful accounts 28,700

D) Bad Debts Expense 24,000
Allowance for doubtful accounts 24,000