XYZ Corp. uses the percentage of credit sales method in determining its bad debt expense. The following information comes from the accounting records of XYZ Corp.:

Cash sales $260,000
Credit sales 740,000
Total sales 1,000,000
Credit balance in the Allowance for Doubtful Accounts 8,000
Bad debt loss rate 3%

What is the estimate of bad debt expense?

a) $22,200

b) $22,000

c) $30,200

d) $30,000

It depends on what the venn diagram is over 

Very hard question too bad i don’t know the answer /:

Having a long credit that will be corrected is better that a short credit that is clear is simply because with long credit history, a prospective lender can see how you have operated your credit facility over a considerable period. nobody's credit history is perfect - everyone has at least 1 or 2 lapses on their record. have short history of your credit doesn't show patterns or trends of persistent late payments.