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    deezerdoo's Avatar
    deezerdoo Posts: 34, Reputation: 2
    Junior Member
    		  
    #1

    Apr 24, 2007, 11:37 AM
    Bad Debit expense
    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's Avatar
    Smith21000 Posts: 69, Reputation: 9
    Junior Member
    		  
    #2

    Apr 24, 2007, 01:40 PM
    Correct!
    aspr's Avatar
    aspr Posts: 1, Reputation: 1
    New Member
    		  
    #3

    Oct 25, 2007, 01:17 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: i.e. lesson 1-4?
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