[Chitowndym]

Can anyone answer this question?

Compute bad debts amount.

Here is information related to Kettle Moraine Co. for 2007.

Total credit sales: 1,500,000
Accounts recievable on Dec. 31 440,000
Bad debts written off 31,000

What amount of bad debts expense will Kettle Morraine Co. report if it uses the direct write off method of accounting for bad debts?

Assume that Kettle Co. decideds to estimate its bad debts expense based on 3 percent of accounts recievable. What amount of bad debts expense will the company record if Allowance for Doubtful accounts has a credit balance of 3,000 dollars?

Thanks