ABC company’s credit sales of an year was $100000. The company decides to count 5% as for its bad debt account each year. What will be the sum of the accumulated bad debt account in the first year?

Given,
Credit sales $100000
company counts 5% of credit sales as for its accumulated bad debt account

So, $100000*5%= $5000

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ABC company’s credit sales of an year was $100000. The company decides to count 5% as for its bad debt account each year. What will be the sum of the accumulated bad debt account in the first year?
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The first year total of accumulated bad debt account will be $5000

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