Adler Company has a $450,000 balance in Accounts Receivable and a $6,000 debit balance in Allowance for Doubtful Accounts. Credit sales for the period totaled $2,700,000. What is the amount of the bad debt adjusting entry if Adler uses a percentage of credit sales basis (at 2%) or a percentage of receivables basis (at 10%)? % Credit Sales % Receivables a. $54,000 $45,000 b. $60,000 $39,000 c. $54,000 $51,000 d. $48,000 $39,000
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