surfgirl
Oct 14, 2006, 09:02 PM
Sales (100% on credit) $1,560,000
Sales Returns 60,000
Accounts Receivable (December 31, 2001) 250,000
Allowance for Doubtful Accounts (before adjustment at
December 31, 2001) 3,000
If Victory estimates its bad debts at 2% of net credit sales, what amount will be reported as bad debt expense for 2001?
Can someone please explain how to do this problem.
Sales Returns 60,000
Accounts Receivable (December 31, 2001) 250,000
Allowance for Doubtful Accounts (before adjustment at
December 31, 2001) 3,000
If Victory estimates its bad debts at 2% of net credit sales, what amount will be reported as bad debt expense for 2001?
Can someone please explain how to do this problem.