Bad Debit expense

deezerdoo · #1 Apr 24, 2007, 10:37 AM

Sales (100% on credit) $950,000
Sales Returns and Allowances $21,000
Accounts Receivable (December 31) $114,000
Allowance for Doubtful Accounts
(before adjustment at
December31; credit balance) $1,000

If bad debts are estimated at 2% of net credit sales, what amount will be reported as bad debt expense?
I say $18,580 If the percentage of net credit sales method is used to estimate bad debits, what will be the balance in the Allowance for Doubtful Accounts account after the adjustments for bad debts?
I say $19,580

Smith21000 · Apr 24, 2007, 12:40 PM

correct!

aspr · Oct 25, 2007, 12:17 PM

Quote:

Originally Posted by deezerdoo

Sales (100% on credit) $950,000
Sales Returns and Allowances $21,000
Accounts Receivable (December 31) $114,000
Allowance for Doubtful Accounts
(before adjustment at
December31; credit balance) $1,000

If bad debts are estimated at 2% of net credit sales, what amount will be reported as bad debt expense?
I say $18,580 If the percentage of net credit sales method is used to estimate bad debits, what will be the balance in the Allowance for Doubtful Accounts account after the adjustments for bad debts?
I say $19,580

Hey dee, I am taking the same courses. can you help with any of the models: ie lesson 1-4?



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