Question: If company uses the percentage of credit sales to calculate the potential bad debt what is one side of a transaction for a company with the following information credit sales 100,000 accounts receivable $75,000 percentage 5%
1) debit bad debt expense for 500
2) credit bad debt expense for 500
3) credit bad debt expense for $10,000
4) debit bad debt expense for 375
5) debit bad debt expense for $10,000