enviousjim
Oct 13, 2007, 11:38 AM
Trying to figure out the right formula to figure out this allowance bad debt? Any help here...
On April 30, the accountant for Tom’s Wear was reviewing items related to accounts receivable. The following information was gathered for April.
a. $400 owed by the Osceola Otters had been written off in February. The amount was paid in full, plus interest on April 3.
b. Credit sales for April were $8,640. The accountant for Tom’s Wear estimated that 3% of the sales would eventually be uncollectible.
c. The beginning balance in the Allowance for Doubtful Accounts was $1,235.
What is the amount of bad debt expense for April?
What will be the ending balance in the allowance for doubtful accounts?
On April 30, the accountant for Tom’s Wear was reviewing items related to accounts receivable. The following information was gathered for April.
a. $400 owed by the Osceola Otters had been written off in February. The amount was paid in full, plus interest on April 3.
b. Credit sales for April were $8,640. The accountant for Tom’s Wear estimated that 3% of the sales would eventually be uncollectible.
c. The beginning balance in the Allowance for Doubtful Accounts was $1,235.
What is the amount of bad debt expense for April?
What will be the ending balance in the allowance for doubtful accounts?