Info providedtotal credit sales 2200000accounts, Ask an Expert

Accounting

Info Provided:

Total credit sales $2,200,000

Accounts receivable at December 31 825,000

Bad debts written off 33,000

1. Assume that the Company estimates its bad debt expense to be 2%of credit sales. What amount of bad debts expense will they record if it has an Allowance for Doubtful Accounts credit balance of4000?

2. Assume that the Company estimates its bad debts expense based on 6% of Accounts Receivable. What amount of bad debts expense will the company record if it has an allowance of doubtful accounts credit of 3000?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797658

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