Question:Lindy & Co. use an allowance method to account for bad debts. They estimate that 5% of the outstanding accounts receivable will be uncollectible. At the end of the year, they have outstanding accounts receivable of $750,000, and a debit balance in the Allowance for Uncollectible Accounts of $9,000. They should record an uncollectible accounts expense of: 

A $28,500 
B $37,500 
C $46,500 
D $55,500 

+ Answer
D 

+ Explanation
answer not sure

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Md. Habib Ullah

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