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Bad debts expense for 2013 is $40,000. $13,000. $5,000. $8,000. 13Multiple Choice Question 118 If a retailer regularly sells its receivables to a factor, the service charge of the factor should be classified as a(n) contra asset. other expense. selling expense. interest expense. 14Multiple Choice Question 104 During 2013, Alfred Inc. had sales on account of $132,000, cash sales of $54,000, and collections on account of $84,000. In addition, they collected $1,450 which had been written off as uncollectible in 2012. As a result of these transactions, the change in the accounts receivable balance indicates a $102,000 increase. $100,550 increase.