Erik co. elects to use the percentage-of-sales basis in, Ask an Expert

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Erik Co. elects to use the percentage-of-sales basis in 2012 to record bad debts expense. It estimates that 3% of net credit sales will become uncollectible. Sales are $808,455 for 2012, sales returns and allowances are $47,894, and the allowance for doubtful accounts has a credit balance of $9,213. Prepare the adjusting entry to record bad debts expense in 2012. (Round answers to 0 decimal places, e.g. 125.)

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9418820

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